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OYO’s Valuation Continues to Soar Despite Losses: Report

This long-anticipated layoff is the biggest move by Japanese technology conglomerate SoftBank Group Corp, which is providing a $9.5 billion lifeline and will soon own about 80 per cent of WeWork's shares

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OYO
Oyo mobile app. Pixabay

Hospitality unicorn OYO’s valuation has almost doubled in a year, reaching $10 billion between September 2018 and October 2019, despite significant losses in the financial year ending on March 31.

The losses have reportedly mounted due to the rise in operating expenses fuelled by the company’s aggressive expansion in overseas markets.

The provisional net loss of the company jumped from Rs 360.43 crore in the previous financial year to Rs 2,384.69 crore this year, according to unaudited financials prepared by a valuation expert.

“The numbers are based on a valuation report prepared by OYO’s valuers (not auditors) that includes certain provisional financials for FY 19. It may be pointed out that the valuation parameters such as share prices are based on fair market value and are not reflective of the share premium price,” an OYO spokesperson said in a statement.

“We would like to clarify again that these are not the final audited financials and the same will be issued later by the company along with the annual report that we issue every year and file with the RoC as well,” the spokesperson added.

But this did not reduce the growth in the valuation of the company backed by Japanese billionaire Masayoshi San’s Softbank Vision Fund. The major boost came from the $700 million investment made by OYO CEO Ritesh Agarwal in October this year through RA Hospitality Holdings (Cayman).

OYO announced in October that it would raise $1.5 billion in the Series F funding round, whereby RA Hospitality Holdings will infuse approximately $700 million as primary capital in the company, with the balance $800 million being supplemented by other existing investors.

Oyo
OYO is present in over 80 countries. As per the company, it witnessed “3.8x” year-over-year revenue growth in August 2019. Pixabay

A significant part of the funds will be diverted towards its growth plans in the US market, and in strengthening the company’s position in the vacation rentals business in Europe, the company said.

Earlier this year, RA Hospitality Holdings received Competition Commission of India approval to invest $2 billion in OYO.

“In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia, are selling part of their shareholding in OYO to help the founder increase his stake while remaining invested and committed to the company’s long-term mission,” OYO said.

OYO had raised over $1 billion in its last financing round, announced in September 2018, led by SoftBank through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital and supported by new strategic partners like Airbnb.

Also Read: Vivo Plans to Launch New Smartphone Vivo V17 in Indian Market

OYO is present in over 80 countries. As per the company, it witnessed “3.8x” year-over-year revenue growth in August 2019.

However, the company’s growing losses provoke comparison with the struggling co-sharing workspace company WeWork which recently laid off 2,400 employees following its failed attempt to go public.

This long-anticipated layoff is the biggest move by Japanese technology conglomerate SoftBank Group Corp, which is providing a $9.5 billion lifeline and will soon own about 80 per cent of WeWork’s shares. (IANS)

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OYO Launches Lighter Version of its App for Android Users

OYO today has footprint in more than 800 cities across 24 countries

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Oyo
OYO is present in over 80 countries. As per the company, it witnessed "3.8x" year-over-year revenue growth in August 2019. Pixabay
India’s largest hotel chain OYO on Thursday announced the global launch of a lighter version of its app — “Oyo Lite” — for the Android users.
Designed to work in areas of low connectivity, the “OYO Lite” app is sized just 800KB, which is less than 7 per cent of the size of the current OYO app, the company said in a statement.
“OYO Lite has been designed as a solution to connectivity and storage constraints on phones. We feel that this product would be ideal for travellers who are remotely connected to the Internet as well as those with basic smartphones,” said Anil Goel, Chief Technology Officer, OYO Hotels and Homes.
The app also features an in-app SOS button to ensure assistance from the on-ground hotel staff as well as from 24×7 OYO Safety Response Team (SRT).
Oyo
Oyo mobile app.
The button is also capable to initiate a call with local law enforcement authorities across the country, the company added.
OYO, however, did not elaborate on plans to make the Lite app available for iOS users.
OYO today has footprint in more than 800 cities across 24 countries.
With over 18,000 buildings and 636,000 units under management and more than 45,000-holiday homes, the company is backed by leading investors, including the SoftBank Vision Fund, Sequoia Capital, Lightspeed Ventures, Hero Enterprise and China Lodging Group. (IANS)