OYO’s Singapore unit has raised a term loan of $200 million from SoftBank. The firm plans to expand the operations through this loan. Recently, OYO has focussed on technology-based solutions to woo users.
How OYO will Invest Current Term Loan?
OYO hotels and rooms are bringing quite a few changes in the business process. It will use current Softbank funding for revenue management and data analytics purposes.
As per the company filings report at the Ministry of Corporate Affairs(MCA), the Singaporean subsidiary of OYO collected $200 million to strengthen its balance sheet and liquidity. The company will use this loan to recover from the pandemic loss. This funding is supposed to be raised in 2020 and is executed now.
Tech is one of the keys focuses of OYO in 2021. To achieve it, OYO has already done a few new appointments and promotions in its core leadership including tech. Ankit Mathuria has been appointed Chief Technical Officer(CTO) in place of Anil Goel, whereas the latter will continue as the OYO advisor.
Talking about 2021, Ritesh Agarwal, Founder, and CEO of OYO, earlier said that it’s a resurgence year for OYO. The company is committed to providing world-class products to customers. OYO is also focussing to provide a better experience to its stakeholders, employees, and guests.
Pandemic hit the hospitality industry very badly. It forced OYO to fire more than 300 employees in December 2020.
Technological Development in OYO
Talking with YourStory, Abhinav Sinha, Global COO, and Chief Product Officer OYO had said that OYO has stronger come back from 2020. The company used 2020 to make its tech and innovation stronger.
Talking about the specific development, he revealed that OYO has included Artificial Intelligence(AI) and Machine Learning oriented photography and editing products. This functionality will be served through OYO Frames. Any OYO partner can request a photo shoot on its premises with the help of the latest technology invented.
He further added:
“And then, you choose vendors, which are available on the platform, and the vendor, after the photography, uploads the pictures on OYO Frames, and that is where the magic happens. The AI in the platform accepts or rejects the photograph.”
Recently, OYO’s market cap has crossed $9 billion in value. The recent valuation increment is due to the Rs 54 crore investment from Hindustan Media Ventures Pvt Ltd. OYO has a strong presence in 800 cities of 80 countries, including the US, UK, India, Japan, etc.
A few days back, Zostel claimed a tribunal court victory against OYO. As per the tribunal court order, OYO has to transfer a 7% share to Zostel and its shareholders. The matter is still not resolved as OYO is not ready to transfer those shares citing different reasons.