By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Social BuzznessSocial Buzzness
  • News
    News
    Stay informed with the latest news on politics, business, sports, and entertainment by visiting our website. Our platform offers comprehensive coverage of current events, featuring…
    Show More
    Top News
    According to recent industry and trade sources, Saudi Arabia has overtaken Russia as the second largest oil supplier to India.
    Saudi Arabia overtakes Russia to be India’s No. 2 oil supplier in August
    September 25, 2022
    Sridhar Vembu gave a hopeful announcement to all the job seekers by saying Zoho is planning to hire 1000 employees and will not do any layoffs.
    Zoho To Hire 1,000 More Employees In Fy24, Committed To No Layoffs
    February 3, 2023
    Twitter is an American social networking service. It was founded by Jack Dorsey, Noah Glass, Biz Stone & Evan Williams in 2006, in the USA.
    Twitter shareholders endorse Elon Musk’s $44 billion buyout deal
    September 18, 2022
    Latest News
    EV Startup Zypp Electric raised $25M to hit 30 Indian cities by 2025
    February 11, 2023
    Zoho To Hire 1,000 More Employees In Fy24, Committed To No Layoffs
    February 3, 2023
    Cars24 Plans To Hire Over 500 Employees Across Verticals In The Next Quarter
    February 3, 2023
    Physics Wallah to hire 2500 employees across verticals by March
    February 3, 2023
  • Business
    Business
    Looking for small business ideas or the latest business trends? Look no further than SocialBuzzness. Our platform provides valuable insights and resources for entrepreneurs and…
    Show More
    Top News
    The most frequent causes of employment gap are children or layoffs, or choosing to pursue a new career path through college.
    How to Deal with an Employment Gap on your CV
    September 16, 2022
    We conducted extensive research on several of the property portals that were accessible online on home rental sites in India.
    Best Home Rental Sites in India
    February 24, 2023
    The impact of advertisements on the younger generation is significant, influencing their behaviours, preferences, and values.
    Impact of Advertisements on the Younger Generation
    May 11, 2023
    Latest News
    10 Strategies for Effective Business Management
    April 5, 2023
    How to Choose the Right Accounting Software for Your Business?
    February 28, 2023
    Challenges of Small And Medium Enterprises at the Start of Trade
    February 28, 2023
    Best Home Rental Sites in India
    February 24, 2023
  • Technology
    Technology
    Whether you’re a tech enthusiast or simply interested in staying informed, our platform provides valuable information on the latest technology news and trends. Visit Social…
    Show More
    Top News
    Do you want to boost your business in this dynamic and fast-moving technology? Here's how you can use technology to grow your business.
    How Can You Boost Your Business Using The Technology? 
    December 2, 2022
    Cloud computing is a boon to large and small businesses by reducing the cost of managing their databases. Read more to know about it.
    Challenges Facing Cloud Computing And Virtualization
    May 1, 2023
    As with any modern technology, there are pros and cons. When using technology for communication, users should be mindful careful.
    Impact of modern technology on human communication
    September 22, 2022
    Latest News
    Challenges Facing Cloud Computing And Virtualization
    May 1, 2023
    Top Website Ideas For Newcomers
    April 16, 2023
    How to Start a Social Media Campaign from Scratch
    April 3, 2023
    Why is Social Media Engagement Important for Online Businesses?
    April 3, 2023
  • Finance
    Finance
    Social Buzzness offers the latest financial blogs on trending topics, providing insightful articles on finance, investing, and the economy. Stay informed on the latest news…
    Show More
    Top News
    You make sure it benefits you for the long term, keeping all this in mind, here are some common mistakes first-time home buyers should avoid.
    Common Mistakes First-Time Home Buyers Should Avoid
    October 10, 2022
    Financial tips acts as a guide in helping you control your expenses, maintain enough savings in case of emergency.
    11 Financial Tips For Youngsters
    December 20, 2022
    Capital budgeting is the process of allocating an organization's cash for future operational needs. Every organization has a capital budget.
    What Is Capital Budgeting- Definition, Objective and Different Methods
    March 19, 2022
    Latest News
    How to Invest During a Recession?
    May 1, 2023
    How to Obtain SR 22 Insurance
    April 4, 2023
    Enhancing Employee Performance Through Monetary Incentives
    March 10, 2023
    The Reverse Mortgage System in India
    March 9, 2023
  • Success Stories
    Success Stories
    Discover inspiring success stories of entrepreneurs by reading our real-life articles at Social Buzzness.
    Show More
    Top News
    We are all aware of the recent achievement of Meesho in winning the #1 most downloaded app in India. Meesho, India's no.1 reselling app.
    The Success Story of India’s No.1 Reselling App- Meesho
    March 7, 2022
    Aadit Palicha & Kaivalya Vohra formed Zepto is a start-up that works with grocery providers to deliver fresh food to consumers' doorsteps.
    The success story of Zepto, founded by two teens; a 10-minute grocery delivery Start-up!
    March 9, 2022
    Rapido, a technology-driven startup based in India, has developed an innovative bike hailing and logistics platform.
    Rapido Bike-Sharing Startup that Proliferated & Became a Success
    September 16, 2022
    Latest News
    Shark Tank Judges of India and Their Inspiring Story
    April 16, 2023
    Success Story of Bill Gates, Microsoft co-founder
    October 13, 2022
    Top Indian Entrepreneurs Success Stories that will inspire you
    October 15, 2022
    Apollo Tyres unveils tyres for premium bikes
    October 10, 2022
  • Explore By
    • Knowledge Corner
    • Education
    • Lifestyle
    • Travel
    • Entertainment
    • Health
Reading: Revaluation of OYO: India’s hospitality Giant
Share
Notification
Latest News
How to motivate yourself to study
How to Motivate Yourself to Study – 10 Tips That Work
Education
Cloud computing is a boon to large and small businesses by reducing the cost of managing their databases. Read more to know about it.
Challenges Facing Cloud Computing And Virtualization
Technology
It leads to huge economic and political uncertainty, which haunts the investor not to invest in times of recession.
How to Invest During a Recession?
Finance
The thyroid is a small butterfly-shaped gland located near the neck below Adam's apple secrets thyroid hormone.
Thyroid Symptoms and Cure – A Lifestyle Guide
Health
Fatty liver disease is a common disease caused by excessive accumulation of fat in the liver. Fatty liver doesn't cause serious problems.
What are the Supplements Causing Fatty Liver?
Health
Aa
Social BuzznessSocial Buzzness
Aa
  • Business
  • Entertainment
  • Technology
Search
  • Home
  • News
  • Business
  • Finance
  • Technology
  • Explore By
    • Education
    • Success Stories
    • Entertainment
    • Health
    • Lifestyle
    • Travel
  • Quick Links
    • Bookmarks
    • Write for us
Follow US
  • Advertise
Copyright © 2022 Socialbuzzness. All Rights Reserved - HRI Consultants.
Social Buzzness > Business > Revaluation of OYO: India’s hospitality Giant
Business

Revaluation of OYO: India’s hospitality Giant

Social Buzzness
Last updated: 2022/09/29 at 7:02 PM
Social Buzzness
Share
7 Min Read
In India, OYO is a franchised as well as leased hotel chain. Ritesh Agarwal established OYO in 2012 with cheap hotels as its primary focus.
SHARE

Corporate finance discussions regularly touch on the subject of firm valuation. A company often does a business appraisal when it wants to sell all or part of its operations, combine with another business, or buy another business. Estimating a company’s present value while considering all of its facets involves doing a business valuation.

Contents
KEY TAKEAWAYS:SoftBank GroupOYO Homes & HotelsRECENT FUNDINGSOYO Softbank RelationsSoftBank slashes IPO-bound OYO’s valuation to $2.7BThe Bottom Line

A business’s fair worth can be determined via business valuation for a number of reasons, such as sale price, determining partner ownership, taxation, and even fundraising.

The economic value of a business or business unit is determined by business valuation. A company can be valued in a number of ways, including by taking into account its market cap, earnings multipliers, or book value, among other factors.

KEY TAKEAWAYS:

  • A valuation can be reached using a variety of procedures and methodologies, each of which could result in a different value.
  • Corporate results or other economic developments can have an immediate influence on valuations, forcing analysts to adjust their valuation models.
  • Valuation is typically a quantitative process, but it also requires some assumptions.

SoftBank Group

With its headquarters in Minato, Tokyo, Softbank is a Japanese multinational conglomerate holding corporation that specializes in investment management. The Group primarily invests in businesses involved in the financial, energy, and technology sectors. It also manages the Vision Fund, the largest venture capital fund in the world with a technology concentration, with over $100 billion in funding. Middle Eastern sovereign wealth funds are among the investors in funds.

The SoftBank Vision Fund, which makes investments in cutting-edge technologies including artificial intelligence, robots, and the internet of things, is managed by SoftBank Investment Advisers. It plans to build a portfolio of 125 AI businesses. It also invests in companies that transform retail, transportation, and real estate. Every few years, it intends to raise $100 billion for a new fund, investing roughly $50 billion annually in businesses.

OYO Homes & Hotels

OYO is a franchised and leased chain of hotels, residences, and other lodgings in India. Initially, OYO offered mostly cheap hotels when it was founded in 2012 by Ritesh Agarwal. It has more than 43,000 hotels and one million rooms in 800 cities in 80 countries as of January 2020, including India, Malaysia, the United Arab Emirates, Nepal, China, Brazil, Mexico, the United Kingdom, and the Philippines. Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, and the United States are just a few examples.

  • Many investors are involved in the company, including SoftBank Group, Didi Chuxing, Greenoaks Capital, Sequoia India, Lightspeed India, Hero Enterprise, Airbnb, and China Lodging Group.

Read More – ” OYO Hotel Rooms Founder and CEO Ritesh Agarwal – Inspiring Success Story “

RECENT FUNDINGS

OYO raised $1 billion in funding in September 2018, and on February 13, 2019, the RoC filed for the $100 million it received from Star Virtue Investment Ltd.

OYO secured $100 million in funding from Didi Chuxing, a Chinese provider of on-demand transportation, in February 2019.

In order to grow his stake in the business to 30%, Ritesh Agarwal, through RA Hospitality Holdings in the Cayman Islands, agreed to purchase shares from Lightspeed Venture Partners and Sequoia India for $2 billion. With this deal, the corporation had a $10 billion valuation.

OYO raised $1.5 billion in Series F fundraising in October 2019 under the leadership of SoftBank Group, Lightspeed Venture Partners, and Sequoia India.

OYO finalized a $660 million debt fundraising round from international institutional investors in July 2021 to pay off current loans.

Before OYO’s initial public offering, Microsoft expressed interest in investing, and in September of that same year, a multi-year strategic agreement was inked.

Oyo submitted its draught red herring prospectus to the Securities and Exchange Board of India (SEBI) in October 2021 in order to raise US$1.2 billion through an IPO.

More than 500 OYO present and former employees bought almost 3 crore shares of the company in January 2022. According to the most recent valuation of OYO, which was $9.6 billion, the total value of these shares can be estimated to be around 330 crores (US$41 million).

OYO Softbank Relations

Softbank is the largest stakeholder of OYO and owns around 45% of the company.

SoftBank slashes IPO-bound OYO’s valuation to $2.7B

Softbank being India’s largest investor has cut its internal valuation to $2.7B just after OYO filed fresh documents with the exchange for its proposed Initial Public Offering.

This represents a decrease of more than 20% from the previous valuation of $3.4 billion. Estimates of SoftBank’s internal valuation are not disclosed.

However, a representative for Oyo stated, “Speculation about valuation markdown is manifestly false.”

SoftBank refuses to respond to ET’s requests for comment.

  • When Oyo secured a strategic investment from Microsoft in September of last year, it was last valued at $9.6 billion.
  • According to the sources mentioned above, Oyo may opt for an IPO valuation of about $5 billion.

“We have not determined the exact timing for the IPO and the IPO valuation is also highly speculative,” the company representative stated.

  • Compared to its earlier aim to raise just over $1 billion, Oyo’s anticipated public offering will be smaller, ET reported in February.
  • Late last year, Oyo revised its projections to roughly $7 billion due to changes in market attitude and more scrutiny of new-age enterprises. Initially, Oyo was considering a valuation of about $9–12 billion.

The Bottom Line

Valuation is the process of figuring out how much an asset or business is worth. In order to provide potential buyers and sellers of an asset or business an indication of what they should expect to pay for it, valuation is crucial. There are numerous valuation techniques, each of which has advantages and disadvantages.

You Might Also Like

10 Strategies for Effective Business Management

How to Choose the Right Accounting Software for Your Business?

Challenges of Small And Medium Enterprises at the Start of Trade

Best Home Rental Sites in India

How to Reduce the Cost of Hiring Social Media Professionals

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Social Buzzness September 29, 2022
Share this Article
Facebook Whatsapp Whatsapp Telegram Copy Link Print
By Social Buzzness
Follow:
Socialbuzzness is a website which covers all kinds of news like entertainment, technology, business, finance and many more. We give you the latest news with understandable language. Having a good lifestyle is necessary to be successful after reading our lifestyle articles you surely will be motivated.
Previous Article Among the goods & services offered by Meta are Facebook, Messenger, Facebook Watch, & Meta Portal. It has acquired Customer, and Oculus, etc. Why was Hiring paused at Meta?
Next Article Education need not be a topic of discussion in the conflict between private schools and homeschooling. The merits of homeschooling varies. Which Education Is Better: Private School, Public School, Or Homeschooling?
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
11.6k Followers Pin
56.4k Followers Follow
- Advertisement -
Ad imageAd image

Latest News

How to motivate yourself to study
How to Motivate Yourself to Study – 10 Tips That Work
Education June 15, 2023
Cloud computing is a boon to large and small businesses by reducing the cost of managing their databases. Read more to know about it.
Challenges Facing Cloud Computing And Virtualization
Technology May 1, 2023
It leads to huge economic and political uncertainty, which haunts the investor not to invest in times of recession.
How to Invest During a Recession?
Finance April 29, 2023
The thyroid is a small butterfly-shaped gland located near the neck below Adam's apple secrets thyroid hormone.
Thyroid Symptoms and Cure – A Lifestyle Guide
Health April 27, 2023

Welcome to the Social Buzzness. This is a website where you will find blogs related to technology, business, news, lifestyle, health and many more. It is obsessed with providing fresh content to all the readers with realism and multiple fact-checking.

Quick Link

  • Home
  • About us
  • My Bookmarks
  • Write for us

Top Picks

  • News
  • Business
  • Finance
  • Technology
  • Success Stories

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Follow US

Copyright © 2022 Socialbuzzness. All Rights Reserved - HRI Consultants.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?