Oyo Hotels founder and chief executive officer Ritesh Agarwal told staff at the Indian startup that it is making progress in recovering from the covid fallout and has around $1 billion to fund its operations until an initial public offering (IPO).
Agarwal said OYO is focusing is on getting its revenue per available room to 60-80% of pre-covid levels across markets. India, Japan, China and South-East Asia are moving towards that range, he said in a fireside chat with Oyo board member Troy Alstead.
Oyo is one of the biggest startups in SoftBank Group Corp.’s portfolio, reaching a valuation of $10 billion before the downturn.
Oyo’s expansion, funded by SoftBank founder Masayoshi Son, led to operational missteps and soured tie-ups. The company has laid off or furloughed thousands of staff, cutting its overall headcount by two-thirds to about 10,000.
Agarwal told staff he has not felt any pressure from outside shareholders as he has cut back during the pandemic. Investors have “very strong” representation on the board and directors give input on the business, he said.
The young founder, who in a highly unusual move borrowed $2 billion to buy shares in his own company, hinted he wants to get the business in shape for a public offering.
“Our management’s focus is to make sure that we have a well designed, IPO-ready company, available for our shareholders and board members to make the right decision,” he said.