In China occupancies continue to grow steadily and are in the mid-forties. Given the fluid Covid situation, any talk of bounceback needs adequate caution, said Ritesh Agarwal while replying to a question.
The company’s expansion proved overly aggressive and it was scaling back even before the coronavirus outbreak, slashing staff in China by about half and reducing its global workforce by about 5,000 people.
Oyo is confident that its guests will have a quality and stress-free experience with 'Oyo Sanitised Stays' with Unilever's leading home and personal hygiene products, he added.
The July 7 order came in a case filed by hospitality company Anam Datsec, which has accused Oyo of non-payment of dues for its Golden Sands property at Calangute in Goa and sought more than Rs 8 crore in damages.
In April, Oyo announced pay cuts and 'leave with limited benefits' options for its staff in India.
Delhi High Court directs Oyo to file affidavit of unencumbered assets in matter filed by Anam Datsec
In its case against Oyo, Anam Datsec has alleged Oyo delayed and failed to make payments of an agreed upon monthly minimum guarantee amount of Rs 14 lakh for the property, did not provide necessary and accurate revenue statements and carried out 'sub standard and hazardous construction' on the property.
Companies may grant 12-15% of their overall stockholding to ESOPs to help staff hit by cuts, furloughs.
SoftBank has benefited from a rebound in its portfolio of companies, particularly Alibaba. The e-commerce giant hit record after record this year, with its market valuation pushing past $700 billion. Uber Technologies Inc., a key Vision Fund investment, has more than doubled since its mid-March trough.
Albrecht is a former president of the American Accounting Association and Association of Certified Fraud Examiners. As a professor, he taught full-time at the University of Illinois, Stanford and Brigham Young University.
Companies are toying with the idea of giving up a floor, consolidating offices, and shutting down regional divisions, among other measures, to reduce long-term fixed asset costs.
Venture capital investors feel that given the double whammy of Covid-19 and blocking of investments from China, things will get worse in the next two quarters.
Oyo is also actively working with the company's investors to identify opportunities in their portfolio companies and help its employees with alternative career opportunities in those companies.
Kapoor said the company is currently offering about 50 hotels for healthcare professionals while a dozen are for quarantining asymptomatic people.
Owing to the coronavirus impact, other unicorns and large startups like Oyo, Curefit, Swiggy, Ola, and Zomato too have had to cut their team sizes by 10-30%, while some have placed additional staff on furloughs.
Oyo did not specify how many employees will be put on leave with limited benefits for four months in India but sources familiar with the matter said 60% of the corporate staff at the company will be put on this plan.
The steps also include training of on-ground teams and measures such as health screening for guests as well as staff, frequent proper sanitisation of the space, encourage in-room dining, among others, Oyo said.
Alstead most recently served as chief operating officer at Starbucks Corporation and is the founder, president, and CEO of Ocean5 and Table 47 both located in Gig Harbor, Washington.
OYO on Wednesday informed employees that 25 per cent of their fixed salaries will be cut and asked some staff to go on a four-month leave with limited benefits from May 4 as the hotel rooms aggregator grapples with "economic pressures" due to COVID-19. The company, which has around 10,000 employees in the country, is a leading player in the hospitality industry that has been ravaged by the coronavirus pandemic.COVID-19 impact: OYO cuts 25% of fixed pay of employees; some staff sent on leave
SoftBank lost $17.7 billion last fiscal year after writing down the value of investments.
In April, Zomato initiated a voluntary salary reduction programme, which also offers affected employees’ additional stock in lieu of the cash cut from their pay cheques.
Startups have started laying off staff and, in some cases, asking employees to take pay cuts as they look for ways to weather the impact of the coronavirus outbreak.
The job cuts have come amid the Covid-19 outbreak, which has caused more than 10,000 deaths in the US so far, crippled businesses and led to job losses.
How is OYO Rooms coping with the lockdown? The company has offered quarantine facility to the Delhi govt. Amazing to see how well businesses have adapted to working from home, Aditya GhoshHow Oyo Rooms is coping with nation-wide lockdown
Oyo risks turning into another problem startup for SoftBank and Son, still reeling from WeWork's meltdown.
That first buyback, announced in mid-March, initially failed to lift SoftBank’s stock amid concerns the conglomerate’s portfolio of startups is vulnerable to the economic shock from the coronavirus pandemic.
It is not as if the signs of trouble for the hotel chain have only started now. Trouble had been brewing at Oyo even before the Coronavirus outbreak created a furore across the globe.
The hospitality sector has been one of the worst affected by the coronavirus outbreak, with global and domestic travel coming to a near-halt.
The COVID-19 crisis has brought a change in startup investment patterns. Venture capital firms are shifting their focus from tech-centric startups to the ones operating in sectors such as FMCG, online grocery delivery, home entertainment etc.
The Delhi government had last week asked hotels in Aero City, near the city’s international airport, to manage and accommodate incoming travellers who were asymptomatic of Covid-19 but required to be isolated as a precautionary measure.
The firm is furloughing employees in countries excluding India, but not cutting jobs.
India’s share of the APAC deal market increased to nearly 25 percent in 2019 and investment value was about 70 percent higher than 2018. This year saw investment activity in companies such as Lenskart, Zilingo, Grofers and FirstCry.
Oyo stated in the letter that since hotel revenues have dwindled and are unlikely to improve in the next few months it is constrained to exercise its 'force majeure’ rights in suspending payments of the monthly benchmark revenue or any other amounts payable to them
The company's entire executive leadership team has taken a voluntary pay cut starting at 25 per cent, with many opting for an additional uncapped amount, and some going up to 50 per cent to enable building the runway for the company.
SoftBank said it expects to record an investment loss of 1.8 tn yen at Vision Fund for the year ended March 31.
SoftBank is embroiled in a legal dispute with directors at WeWork after backing out of a $3 billion tender offer agreed when it bailed out the office-sharing firm following a flopped IPO attempt last year.
Oyo, which is laying off staff across the globe including India as it struggles to rein in costs, said losses in its home market went up to $83 million in FY19 from $50 million in FY18.
As per the term of the agreement signed between Conclave and Oyo, the corporate debtor, Oravel, would pay the corporate creditor, Conclave, an assured benchmark revenue, which is minimum business guarantee of Rs 12,96,000 every month irrespective of bookings, Conclave Infratech claimed in its application.
The development follows a statement by the SoftBank-backed company in October, according to which Agarwal will invest $700 million into the company he founded in 2012, with the rest coming in from its largest investor SoftBank and other unnamed investors.
Over the past 4 weeks, at least two dozen top companies have fired employees and contract staff.
Much of the layoffs will stem from distress sales and company closures.
This takes Sequoia Capital’s total assets under management for India to an estimated $5.4 billion, spread across the seven funds it has raised till date, and through which it invests in India and across Southeast Asia.
Son was the only bid in town for most young start-up founders. But with snowballing setbacks, that bid is gone.
The Covid-19 outbreak, which has ravaged the world's second-largest economy, has hit the hotel room aggregator's operations in China, Oyo group CEO Ritesh Agarwal told Bloomberg in an interview on Wednesday.
Like rival Tencent Holdings Ltd, ByteDance’s social media channels have seen usage spike after the Covid-19 pandemic confined millions of people to their homes.
The new fund comes soon after the firm has been able to complete record exits from unicorns like Oyo and Byju's in the previous year, delivering cash returns of over $900 million between the two deals.
Son’s conglomerate has taken one blow after another since the implosion of WeWork’s initial public offering last year and SoftBank’s subsequent bailout.
The development comes at a time when SoftBank is struggling to raise new capital for the second edition of the $100 billion Vision Fund amid a bunch of its portfolio startups struggling to survive since the WeWork debacle last year.
The letter written by Ankit Agarwal, head of Oyo's procurement and supply chain states that the hospitality industry is critically dependant on people movement and interaction and the above actions have impacted the industry significantly.
Losses climbed to $335 million, or 35% of revenue, from $53 million, or 25% of revenue, as the startup expanded into China and other new markets. India’s regulations require companies like Oyo to disclose their financials, but with lags that can reach about a year.
ShareChat claims to have executed campaigns for over 25 top companies in the last few months and has been getting repeat campaigns.
As per the CCI order, on December 3, Casa2 Stays the parent company of FabHotels had filed an application seeking inspection of all documents in the matter including submissions made by the parties, which was disallowed by the commission through an order dated December 12 as no sufficient cause was demonstrated in the said application.
Over the last few weeks, the company has launched several initiatives to fight the spread of Coronavirus. It has committed Rs 500 crore to Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES).
Hoteliers are unable to contact company representatives who were doing business with them.
Layoffs in Delhi and Jaipur were communicated to the staff on Monday, while in Gurgaon employees were notified on Tuesday.
Son is trying to salvage his reputation as one of the world’s foremost tech investors, a name based largely on a prescient early bet on Alibaba, which grew to dominate e-commerce in the world’s No. 2 economy. But he’s struggled since to match that success, after sinking money into a string of struggling startups from Uber Technologies Inc. to WeWork and Oyo Hotels.
Layoffs will be in mid-management, business development, sales and operations roles, & tech teams.
The original dispute was between Zo Rooms and Oravel Stays. But the recent transfer of parts of businesses by Oravel Stays to Oyo Hotels & Homes and Oravel Stays Singapore might result in Zo losing out on the value of businesses moving to other entities.
In a 13-page order, the Competition Commission of India (CCI) said that a case against MMT and Oyo for entering into a vertical arrangement having an appreciable adverse effect on competition in the market is also “prima facie” made out.
Elliott wants SoftBank to set up a special committee to review processes at the Vision Fund, the world’s largest single investment pool for tech startups.
While business models differ across startups, a slew of real estate companies are offering solutions for student housing to residential living as buying trends are rapidly moving to asset-light “sharing economy” from ownership.
"We are entering into co-living segment which is a big growth area.We have launched an exclusive section for co-living on our Housing.com, Housing.com CEO Dhruv Agarwala told reporters.
SoftBank's investments include a number of startups that are restructuring or scaling back: WeWork is recovering from its failed IPO last year, Oyo Hotels is cutting 5,000 jobs after its business in China crumbled. Uber is reducing operations and costs in search of profitability.
Oyo is asking about 20% of its 12,000 employees to go, but this will end very soon, according to Oyo's CEO.
OYO's revenues surge 4.5x to $951 million but its net loss balloons to $335 million. So, what’s in store in 2020? We check in with the top management: Board Member, , CEO-India & South Asia on Startup Central with Nayantara Rai.What's in store for OYO in 2020? CEO Rohit Kapoor and board member Aditya Ghosh decode
Executives say scale of layoffs ‘far larger’ than expected but Oyo denies any such plan.
Gupta is entrusted with the responsibility to strengthen and consolidate existing opportunities in the co-living, student housing, self-operated hotels, and rental homes businesses of the company in India and South Asia under the frontier businesses umbrella.
UP STF on Wednesday killed an aide of gangster Vikas Dubey in Hamirpur and arrested another following an encounter in Kanpur for their alleged role in last week's Bikru ambush wherein eight policemen died. The Haryana Police have been put on high alert after reports of sighting of fugitive Vikas Dubey in a Faridabad hotel. The police have managed to access a CCTV grab which showed Dubey, donning a dark black shirt, jeans and mask, was present in the hotel. Another CCTV grab showed he was standing on the roadside with a bag, awaiting a vehicle. TIMES NOW's Siddhant brings us a ground report from gangster Vikas Dubey's relative's house in Faridabad where he stayed until yesterday after fleeing from Kanpur.Kanpur ambush: Vikas Dubey spotted in Faridabad; gangster's 4 aides arrested, 1 killed
SoftBank-backed Oyo plans to shed another 1,200 in India over the next three to four months, sources said.
Oyo's campaign has been conceptualised and conceived in-house under the charge of Mayur Hola, creative head, India, and SE Asia, for the company. The three films shot by Chrome Pictures show different use-case scenarios.
Misra, who oversees the $100-billion technology-focused fund that has backed companies like Uber, WeWork, Oyo and Paytm, is said to have orchestrated efforts that included planting negative news stories and directing a concerted shareholder campaign to oust Nikesh Arora.
The company runs about 800 hotels under a self-operated business model, where it makes investments and has leasing arrangements with property owners. It is likely to phase out contracts under the segment that is not Ebitda-positive by March 31. Plans are also afoot to shut down ancillary businesses that do not post an operating profit by July as per a mandate from SoftBank.
Most startups have allowed employees to continue working from home, for roles that may not require them to commute to offices, although the government has greenlighted office travel.
Ghosh also serves as a member on the board of Oyo Hotels and Homes, where he was CEO prior to moving in December 2019 to the role at the board of the Gurgaon hospitality company.
Forms an integrity committee to ensure compliance across levels, and further build on corporate governance in the company
The windfall for the fund executives comes on the back of RA Hospitality, a special purpose vehicle domiciled in the Cayman Islands, recently buying Oyo shares worth $1.3 billion from these two venture firms on behalf of Agarwal.
Divisions like sales, supply and operations will account for a chunk of the layoffs, sources said.
As weddings go online amid lockdown, startups and even bigger firms are exploring virtual wedding space.
Atkins, who founded Baja Corp, an early-stage technology, energy and healthcare-focused investment firm in the early 90s, has sat on the boards of corporations like Schneider Electric, Volvo, Polycom and Nasdaq.
As an independent member of the board, Betsy will play a supervisory role and provide guidance to the founder and the management on key business decisions, OYO Hotels & Homes said in a statement.
The unprecedented move has raised eyebrows due to the massive debt financing raised by the entrepreneur by pledging his shares. Founder & CEO Ritesh Agarwal did not say how he would service the debt. When asked if he would opt to refinance the loan, he said that he is focused on building a good business, and if he does, the refinancing will happen.
With estimated rental yields as high as 9%, startups plan to pay either a fixed monthly payout or strike a revenue-share deal.
The closure marks an embarrassing failure for SoftBank, which is struggling with other investments made by its $100 billion tech fund, including Oyo, Uber Technologies Inc., and most notably, WeWork.
Aditya Ghosh, CEO, India & SA, Oyo Hotels and Homes tells Brand Equity’s Amit Bapna why this is the right time for the brand campaign and why new-age brands that challenge legacy businesses are bound to face flak. Excerpts...
A number of micro VC fund managers admit that the emergence of marquee VC-backed programmes over the last two years have made the startup landscape trickier to navigate, which has therefore seen them adopt niche investment strategies, and also to scout for opportunities outside the metros.
When contacted by ET, a spokesperson for CarDekho confirmed the layoffs and pay cuts, without answering specific queries or providing details.
Singer’s Elliott Management Corp also wants SoftBank to set up a special committee to review the investment process at its venture capital arm, the Vision Fund, which it thinks has dragged on the share price despite making up a small portion of assets under management
Oyo Hotels & Homes has elevated its India and South Asia Head Aditya Ghosh to its board, and has named Rohit Kapoor, who was leading its new real estate businesses, as his successor, the SoftBank-backed company announced on Monday. Watch the excerpts from exclusive interview with ET NOW.ET Now Exclusive: Ritesh Agarwal on OYO roadmap, role of Aditya Ghosh
Ghosh said he will focus on governance, profitability, communications, consumer experience, security and safety
Ola — backed by global marquee investors including SoftBank, Tiger Global, Tencent, and Steadview Capital—employs about 4,000 people in its Indian operations. It was valued at around $6 billion during its last funding round in September.
Some of Oyo's offline stores will sell wedding products while others will be experiential in nature to help customers simulate wedding scenarios.
The Tokyo-based company, led by founder Masayoshi Son, has said it expects to book a record 1.35 trillion yen operating loss for the year ended March 31 when it reports financial results Monday.
Zomato has said it will let go of 520 people and undertake up to a 50% pay cut for remainder of the organisation.
The potential investment is expected to give Treebo a post-money valuation of $205-240 million and is likely to be part of a future larger round
Oyo's statement follows multiple reports on the death of Priyanshu Kumar, a resident of Dehradun and a national level shooter, and who had travelled to Delhi to participate in a competition.
Firm's employees in dock over “invalid” no-objection certificates to Booking.com.
Several companies that include some of the big recruiters in hospitality and automobile sectors have also deferred the date of joining by longer than usual.
BookMyShow is promoting free-to-watch Instagram Live performances in an effort to keep its users engaged, while restaurant aggregator and food delivery firm Zomato is targeting a push into alcohol delivery.
A cheating case has been registered against OYO Hotels & Homes founder Ritesh Agarwal and six others based on a complaint by a hotelier who has alleged that the firm did not pay rent for rooms for the past five months, police said on Monday.FIR against OYO founder, officials over dues, co. refutes charge