Softbank and Oyo to Partner for ‘Oyo Latam’, Taking Over 1000 Hotels in Brazil and Mexico
Softbank, one of the major investors of Oyo is taking direct action in managing the Latin America Business of the COVID- hit hospitality startup, under a new joint venture ‘Oyo Latam’. It will employ $5 billion of its Latin America fund, reviving the business after Oyo was valued at $10 Billion in the recent fundraising round.
Softbank initiated with Oyo in Latin America in 2019 and has expanded since then. With its fast pace and dynamic tourism market, Latin America can prove to be the right fit for the hospitality giant. Oyo Latam will be taking over 1000 hotels, mainly in the region of Mexico and Brazil.
The tourism and hospitality sector has been the worst hit by the pandemic across the globe. Oyo with its global presence has faced major hurdles and, due to Covid-19 has been forced to cut-off employees in large numbers across different regions including China, Japan, and India.
Oyo is currently facing major setbacks in China while also being involved with a lawsuit filed by Hotel partners over non-payment of dues. Some of the bank accounts of the company have been frozen in China as a result of the lawsuit.
The current move makes it evident that the Japanese investors are diligent enough to bring the Indian startup back on the track and are closely monitoring its operations. While the company faces losses at various ends, this joint venture with Softbank can help Oyo revive its operations.