Softbank’s Oyo Looks Like Another WeWork Debacle

March 4, 2020

India-based Oyo Hotels & Homes reported financials to the market recently and the company is burning significant cash. We see worrying signs that another company backed by Masayoshi Son’s SoftBank Group is looking vulnerable – just like WeWork.

While the Indian hospitality startup is undoubtedly a success story, having achieved a US$10 billion valuation after raising US$3.2 billion of capital in just six years, it appears that a bold growth strategy may have been pushed too far.

The two charts below show the scary parallels between Oyo and WeWork’s meteoric rise in valuation. We see substantial risk of a down-round should Oyo need to raise more capital.

Sources: Zero One, Crunchbase, Tech Crunch, India Times, VC Circle, Financial Express

Sources: Zero One, SharesPost, Forbes

Read our full Oyo report on TechInAsia >>

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