OYO Valuation Slashes to $2.5 Billion After New Funding Round

Originally a successful Indian chain of budget hotels with an 10 billion USD appraisal, OYO only now closed a new funding round at 2. 5 billion.

OYO started with the disruption of the budget hotel category by Ritesh Agarwal in 2013.

This has received funding with investors such as SoftBank, Sequoia Capital, and Lightspeed India and has ventured very aggressively to expand it operations.

It was highest recorded in 2019, and the funding came in at $10 billion making it among the most expensive start- up industry in India.

Impact of Pandemic: The COVID-19 pandemic took a very tolling effect on hospitality.

OYO, being heavily reliant on travel and tourism, saw occupancy rates and revenues go down drastically during the pandemic; thus, adding financial trouble.