Ola, Oyo watch China situation with caution
After the government’s strong-arm tactics against Tik-Tok, two Indian global startups with substantial Chinese funding—Ola and Oyo—are cautiously watching the geopolitical trends besides battling to overcome the challenges created by COVID-19.
“Geopolitics is a big risk to global companies. Various countries are enacting policies that project companies as diplomatic enablers,” said Ritesh Agarwal of Oyo while speaking at the 47th National Management Convention of All India Management Association (AIMA).
His strategy is to be local in branding, staffing and culture while keeping the tech global. Though confident that Indians see Oyo as a product developed in India, he said the company is nevertheless watching the situation closely. Oyo is funded by Chinese investors and has business in China.
On the other hand, Ola CEO Bhavish Aggarwal said the trend of digital companies getting embroiled in geopolitical tussles as an opportunity because Indian companies enjoy more trust and respect overseas.
“Small is the new big after Covid,” predicts Agarwal as he sees people shunning large hotels and opting for boutique hotels and vacation homes. The smaller hotels need technology platforms like Oyo more than ever before, he felt.
Both Ola and Oyo do not feel the need for additional funding because of Covid, as the founders claim that they have enough capital.