SoftBank Group Corp. has slashed the valuation of Oyo Hotels on its books by more than 20% as the Indian startup prepares for an initial public offering, people familiar with the matter said. Oyo was once a high-flying startup, but has seen its valuation drop significantly in recent months.
The Japanese investor, the largest shareholder in the hotel-booking firm Oyo, has cut its estimated value for the company to $2.7 billion. This is down from an earlier estimate of $3.4 billion, and is based on a comparison of Oyo's operations with those of similar companies. The lodging firm had reached a valuation of $10 billion in a 2019 funding round.
Oyo, a leading provider of hotel rooms and other accommodation, has filed new financial documents with the Securities and Exchange Board of India (SEBI) as it prepares for a stock market debut. The company is aiming for a valuation of around $5 billion and hopes to list early next year.Oyo has been cutting costs and recovering from the pandemic-induced travel slump, which has helped it reduce losses. Its IPO plans are not final and could still change, depending on market conditions.
The startup is targeting a valuation of around $9 billion in its IPO after initial conversations with potential investors, Bloomberg News reported in January. In its initial filing in September last year, the company said it planned to raise 84.3 billion rupees ($1 billion) through the sale of new shares and those held by existing investors.
A spokesman for SoftBank declined to comment. Oyo said it was confident that its valuation shouldn't have been marked down, given its recovering business performance. The company added that it hadn't decided on the timing for an IPO.
The startup said in a statement that it is confident that the speculation about valuation markdowns is incorrect. Valuation is based on business performance, the startup said, and it has not yet decided on the timing for its IPO or what the valuation will be.
Oyo's latest filings showed narrower losses and a rebound in sales for the year through March 2022. The company reported a loss of 18.9 billion rupees for the year, nearly halving from the previous 12 months.
This year, investors have sold stocks as macroeconomic risks have increased. They have ascribed lower valuation multiples to tech companies.
The company has been a controversial startup investment by SoftBank founder Masayoshi Son, with parallels to his support for WeWork and its eccentric founder Adam Neumann. Son has backed Oyo founder Ritesh Agarwal for years and urged him to rapidly expand in markets like Japan and the US -- with disastrous consequences.
Oyo, a SoftBank-backed hotel startup, is seeking to revive its IPO plans as growth resumes. The company had shelved its IPO plans earlier this year due to the pandemic, but is now seeing strong demand for its services again. Oyo has raised over $2 billion from investors including SoftBank, and is one of the most valuable startups in India.
Oyo, a SoftBank-backed startup, is said to be shelving plans for an IPO in 2022. The company, which is one of the largest hotel operators in India, has been facing financial difficulties amid the pandemic.Oyo, a startup that has received backing from SoftBank, is said to no longer be planning to go public through an IPO in 2022. This news comes after the company has been facing financial difficulties due to the ongoing pandemic. Oyo is one of the largest hotel operators in India.
Oyo, a India-based hotel chain, is reportedly aiming for a $9 billion valuation in its upcoming initial public offering (IPO). This would make it one of the most valuable companies in the country.Oyo was founded in 2013 and has since become one of the largest hotel chains in India. It has also expanded into other countries, including the United States. The company is said to be planning to list on the New York Stock Exchange.
Oyo, a Japanese tech company backed by SoftBank, has filed to raise $1.1 billion in an initial public offering (IPO). This would value the company at around $10 billion.Oyo is a Japanese tech company that provides accommodation booking services. It was founded in 2013 and is headquartered in Gurugram, India. The company has raised $1.7 billion from investors including SoftBank, Sequoia Capital, and Lightspeed Venture Partners.
As an investor in hundreds of private startups, SoftBank reports the value of its holdings each quarter and then books the changes as a profit or loss on its income statement. In the June quarter, it reported a record $23.4 billion loss on plunging portfolio valuations and foreign currency losses.
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