SAO PAULO/NEW DELHI/BENGALURU - Softbank Group is taking a direct role in managing its virus-hit hospitality startup Oyo’s operations in Latin America through a joint venture which will control all hotels in the region, the head of Oyo Brazil told Reuters in an interview on Friday.
Weaver said both companies would have equal representation on the board, but did not say how much Softbank would invest. Softbank has taken a big writedowns on bets including shared office space company WeWork and wants to avoid a similar fate with Oyo, in which it has invested over $1 billion, said one of the sources who is directly familiar with Softbank’s thinking.An Oyo spokeswoman said Softbank is like any other investor in the company with a seat on the board and that Oyo is “a management-run and a board-governed company.
Softbank’s Latam fund has invested $75 million into Oyo’s business in the region, said a source with knowledge of the matter.“Latin America has proved to be a good fit for Oyo, with a super fast growth pace because the hotel market is extremely fragmented in the region,” Weaver said. The lawsuits have resulted in some of Oyo’s bank accounts in China being frozen but the company said that is a standard process and does not mean it is guilty.
carolinamandl aditishahsays ASenjourno If you were looking for a reason more to exit SB...
carolinamandl aditishahsays ASenjourno Could this sound any more like corporate press release?
Oyo was dead a long time ago, atleast in India.
Because Softbank is obviously such a responsible corporate citizen 🙄
Please SAVE_STUDENTSOFINDIA