Since then, however, the Indian upstart has stumbled as it faces questions over its ability to make money and sustain growth. Those problems have been exacerbated by wavering confidence in the bets placed by its biggest backer, SoftBank — which took a hit
after the botched IPO
of WeWork — as well as
the economic impact of the coronavirus pandemic.
Last January, OYO announced layoffs
, saying that it needed to prioritize profitability, long-term growth and stronger corporate governance, among other goals. It disclosed in a prospectus Friday that it has yet to turn a profit.
The company has been cut down to size in other ways, too. According to a person familiar with the matter, it was most recently privately valued at $9 billion. That’s down from a previous valuation
of as much as $10 billion in 2019.
Still, it continues to boast a lineup of marquee investors, including SoftBank’s Vision Fund, which owns nearly 47%. Agarwal personally holds about 8%, while Sequoia Capital and Airbnb (ABNB
) also remain backers.
OYO recently struck a major partnership
with Microsoft (MSFT)
, which will allow its hotel owners to use the software company’s cloud and artificial intelligence technology. The companies also plan to create so-called “smart room” experiences, which would offer customers self check-in and virtual customer service options.
SoftBank has been calling on its portfolio companies to go public, with CEO Masayoshi Son recently describing
IPOs as the “harvesting” of “golden eggs.”
OYO did not outline a timetable for its listing in its prospectus. But it is planning to debut by the end of the year, according to a person familiar with the matter.