OYO has appointed Mr.Aditya Ghosh as the new CEO of India & South Asia regions. Ritesh Agarwal has been made Group CEO. I speculate that this decision is made by the investors to make Ghosh with a proven track record as CEO of entire operations and sideline founder into a namesake honorary post.
If what Ghosh did at Indigo is anything to go by, OYO would have a better chance of surviving and becoming profitable.
In a world obsessed with venture capital, profitability does not matter. All are after market share with the intention of creating monopoly or write cheque thinking that there would be someone who is more foolish than them to buyout their stake at a higher valuation after years. The VC's are known to invest in stupid ideas like that Juicero fresh juice maker device with IoT. Even a primary school kid with sane mind wouldn't invest in such junk.
All these things are short term mirage. There will be always a guy who is more clever and cunning than these VC funded companies. I still have some hopes for OYO in the hands of Aditya Ghosh. That guy literally changed the face of aviation industry in India. If it was for Ritesh Agarwal alone, OYO wouldn't last for more than 3-4 years. Hospitality is very very hard business to be in. Especially its insanely difficult to maintain consistency in budget segment. Not to forget never ending theft by guests, people who come for illegal activities etc. Not easy.