SoftBank has sharply cut the valuation of its investment in hotel aggregator unicorn Oyo. This comes amid the hotel aggregators 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.
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.
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