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OYO’s $807m cash injection is only a temporary fix to bigger problems

Under the aegis of Softbank’s Vision Fund, the Indian budget hotel chain has quickly expanded into China and Europe. But the startup cannot outrun poor business practices that have left customers dissatisfied and investors skittish.

Softbank India and RA Hospitality Holdings, owned by OYO founder Ritesh Agarwal, purchased $807 million worth of shares in OYO parent company Oravel Stays on March 17. The Vision Fund, helmed by Masayoshi Son, bought up nearly ten thousand shares while RA Holdings came into possession of another 5,699 according to filings seen by Entracker.  

“This is a key development for OYO Hotels Homes and additional funds will help the business achieve its strategic objectives for 2020,” an OYO spokesperson said. 

The transaction is part of a...

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