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Oyo, a platform backed by SoftBank, has asked for a start-up investment that it hopes to raise by $ 1.1bn, most recently on India’s first-ever market-leading trading platform.
The company, which owns 47% of SoftBank, was one of the largest Japanese betting companies in India’s trading platform, burning down the money of its investors as it grew rapidly to become a country. the hotel’s biggest chain.
But economic growth, business inefficiency, and complaints from retailers have put them at a disadvantage – even before the epidemic – compared to an unofficial comparison with WeBork’s SoftBank, which is experimenting with them. the list in 2019 has failed.
Oyo, which was founded in 2013 at the time Ritesh Agarwal, 19, wants to convince market sellers to turn his business around.
He plans to join forces with a number of other startups to make the most of the 18-month period that has forced India to film. Zomato stock market, the first to go public in July, was were well received among investors and its shares remain twice their value.
“The whole area is very hot right now. . . It’s the first day for those who have been listed for Zomato’s performance, “said Shravan Shroff, a fundraiser at Oyo.
“Everyone wants to jump in. But I am wrong to be careful. . . When you have free money, everything goes smoothly and everyone wins. But the sooner you get in trouble, the more you know who the horse and the donkey are. ”
They have raised Rs70bn ($ 944m) through the new divisions, according to a report on Friday. It will sell some Rs14.3bn in existing shares, most of which will come from SoftBank.
Other long-time sellers such as Sequoia and Lightspeed, which sell their shares in 2019, have also held their shares. Agarwal owns about one-third of the company.
Those who lost Rs39bn in the financial year that ended in March, are expected, down from Rs128bn last year.
His big business involves signing up for independent hotels up to his platform to compete with established chains. At the event, Oyo said it has 1.2m rooms in 80 countries, and also moves to areas from wedding planning to pubs.
But it began to retire at the end of 2019, reducing its workforce and returning to international markets including the US, UK and China to address growing damage. SoftBank has previously reduced Oyo’s accounting from $ 10bn to $ 3bn.
This year Agarwal adauza Financial Times that “growth will be less than what it was before” because Oyo prioritizes smaller markets such as India and its temporary lending business in Europe.
Sweta Patodia, a researcher at Moody’s Investors Service, said in a statement that Oyo wants an IPO “to give the company [with] a long road to tackling weak operations, if the disruption of the epidemic continues for longer than expected ”.
The list, he added, “will also reduce the risks associated with the management of corporate content management and disclosure to the public”.