News Platforms 

The founder of SoftBank-backed hotel startup Oyo is buying back shares in his company in a $1.5 billion deal

“Just like WeWork, OYO is a REIT [real estate investment trust] with too much SoftBank capital,” he wrote last week” writes Shona Ghosh for businessinsider.com. Ritesh Agarwal, chief executive and cofounder of budget hotel platform Oyo, is to raise his stake in the SoftBank-backed firm in a $2 billion funding deal.It has also attracted growing scrutiny from critics and the press, partly thanks to its apparent similarity to another SoftBank backed property business, WeWork.Along with the buyback, Agarwal and Oyo’s backers will inject $1.5 billion of fresh capital into the business, with $700 million of that coming from Agarwal. Oyo’s business has ballooned beyond budget hotel rooms to office-sharing, student accommodation, high-end Airbnb-style “homes,” upmarket business hotels, and even magazine publishing.
 
Source: businessinsider.com



Related posts