Yes, but this mainly holds true at the lower end of the pricing, starting from as low as INR 899 going upto a few thousand per day. He has managed to get such rates by aggregating a good number of guest houses which cost much less, which are otherwise out of the purview of typical hotel aggregators. The room detail page provides you a good description of what to expect in terms of feature list as well as realistic photographs, eliminating the "surprise" factor as much as possible. Instead of searching for a Hotel A/B/C when visiting a new city, you just book an "OYO Room" of your desired category in your desired location.
I have never experienced this when booking through kayak, priceline, orbitz and numerous other sites