SoftBank couldn't be going through more turbulent times. The Japanese venture-capital giant posted losses of over US$23 billion—its largest ever—in the quarter ended June. This was thanks mostly to the firm marking down the value of 284 portfolio companies.
Among the casualties is Indian hospitality startup OYO, news agency Bloomberg reported last week. SoftBank cut OYO's valuation by 20% to US$2.7 billion. What's more worrying for OYO is that the figure is 70% less than its US$9.6 billion valuation a year ago??
This is terrible news for OYO, as the company revives plans to go public. SoftBank's write-down complicates the narrative OYO is trying to push: a post-Covid business rebound coupled with narrowing losses.
There are huge implications for the hotel-booking platform, which wants to raise US$860 million to expand its operations and repay loans. And for its investors, too, who want to sell US$175 million worth of shares. OYO staffers are not immune, either. With a considerable chunk of their salaries tied up in stock options, the shares they got, or will get, may be less valuable than before.
Come and have best service with our the student helpline team who provide you all college assignment help with best content also we are providing plagrisum free content which help you to gai best marks in your subject. We have best qualified writer team who know how to provide best assignment within best time with best price.