On March 11, 2021, a regulatory filing confirmed that the Softbank has sanctioned a loan of US$ 204 million to OYO Hotels (Singapore) Pte Ltd.
The Indian hospitality company, OYO Rooms or On Your Own Rooms, verified on March 11 that the company’s Singaporean subsidiary OYO Hotels (Singapore) Pte Ltd has secured a term loan of US$ 204 million from the SoftBank’s SB Investment Holdings (UK), to augment market liquidity and consolidate its financial positioning in this pandemic era. Asia’s corporate trust and agency services provider, Madison Pacific Trust, has been appointed as an intermediary trustee by SoftBank for this deal.
The Founder and CEO of OYO Hotels & Homes, Ritesh Agrawal, stated that the company is looking for a post-pandemic recovery by developing better products and improving the experiences for its employees, guests, shareholders, and collaborators. The company plans to invest the major part of the money from this capital in advancement of its business model throughout the administrations such as proprietorship, data interpretation, and apartment management.
As a hopeful sign, OYO is witnessing a decent recovery in its business since the outbreak of COVID-19 epidemic. The Southeast Asia and European regions have recorded the recovery in business with cumulating profits.
The market valuation of OYO had dropped from US$ 10 billion to US$ 8 billion last year due to pandemic. Later in January 2021, the Indian media company, Hindustan Media Ventures Ltd had made an investment of US$ 7.3 million in the company. Following this fundraise, the market valuation of OYO increased to US$ 9 billion in March 2021, indicating improvement in the business.
The new term loan capital will aid OYO to boost its functioning which was significantly affected during the national lockdowns across the globe.