SoftBank cuts valuation of Oyo to $2.7B: Report
SoftBank has brought down the valuation of Oyo by 20% after benchmarking it against peers with similar operations.
SoftBank has sharply cut the valuation of its investment in hotel aggregator unicornas the latter the plans for an initial public offering, according to a report.
SoftBank has cut down its valuation of Oyo by 20% placing its valuation at $2.7 billion, Bloomberg reported. Citing sources, the report said SoftBank has lowered its valuation to $2.7 billion in the June quarter from an earlier $3.4 billion after benchmarking it against peers with similar operations. It was last valued at $10 billion in 2019.
YourStory could not independently verify this report.
According to a report, Oyo in a statement said that it was confident that its valuation shouldn’t have market down given its recovering business performance.
Oyo has also filed a fresh round of financial documents with SEBI for its IPO as it now sees recovery in business following the impact from Covid-19 pandemic.
In its filings with the stock market regulator, Oyo said it has reported its maiden EBITDA positive quarter. It reported Rs 7 crore adjusted EBITDA in Q1 FY2023 driven by an increase in the overall Gross Booking Value (GBV) while improving the company’s unit economics.
(This story has been updated to correct a typo and add a disclaimer)
Edited by Akanksha Sarma