- OYO ‘s value dropped to $8 billion, making it a valuation drop of $2 Billion according to Hurun’s most recent report during coronavirus pandemic. The Hurun Global Unicorn Report 2020 values the unicorn of hospitality at $8 billion, compared to the last known $10 billion market value.
OYO ‘s value dropped to $8 billion, making it a valuation drop of $2 Billion according to Hurun’s most recent report during coronavirus pandemic. The Hurun Global Unicorn Report 2020 values the unicorn of hospitality at $8 billion, compared to the last known $10 billion market value.
Yet other big hotel chains including Indian Hotels Co, Lemon Tree, and Chalet Hotels, to name a few, have a sharper net worth decline compared to OYO, which is the third-largest startup in India after Paytm ($16 billion) and Byju’s ($10.5 billion after its current fundraising). OYO’s fall in value is a reasonable estimation as its publicly traded rivals have seen the market-beating.
According to Hurun, the fall in valuation has been identified as a component of the Covid19 effect on the hospitality market, in line with the AirBnB value markdown. “We took the post-COVID situation into account, and we changed some of the companies’ valuation. Hospitality is one of the highly impacted sectors, it’s a no brainer. Airbnb has downgraded its valuation and we have adopted a conservative in-line approach to that valuation in terms of nearest comparable results, “said Hurun Report India MD and Anas Rahman Junaid, Chief Researcher.
The value of OYO had risen to $10 billion in November 2019, when founder and CEO Ritesh Agarwal poured into the company in $2 billion. With that change, Agarwal ‘s value of OYO had almost doubled.
However, due to the Covid19 pandemic, the hospitality unicorn was seriously impacted. Founder Ritesh Agarwal said in a video message to his employees in April that he can not imagine any other industry being impacted worse than travel, tourism, and hospitality because of coronavirus. Agarwal had previously reported a 15-20 percent decrease in revenue and occupancy compared to Covid-19. Later Agarwal had said that its March revenues globally fell by more than 50 percent -60 percent.
Though the market has slowly reopened and hotels have opened doors, as India continues to record high numbers of coronavirus cases it will still take time before normalcy sets in.