Oravel Stays, the parent company of Oyo, an Indian budget hotel chain, has received $807 million from its existing investors SoftBank and founder Ritesh Agrawals’s owned RA Hospitality. According to the regulatory filing, this investment is a part of $1.5 billion Series F fundraisings, which was announced at the end of 2019.
On this occasion, Oyo’s spokesperson said, the additional funds will help Oyo Hotels & Homes in developing along with helping businesses to achieve its strategic objectives for 2020. The strategic objects include sustainable growth, achieving operational excellence, and investment in training and corporate governance. The funding will be utilized for strengthening firms’ focus on improving customer experience, investing in the R&D process, and enhancing partner experience across all touch-points.
This news came just after months when Oyo lay-off employees across its various offices for cutting the cost of the company and in bringing efficiency. As per media reports, Oyo has slashed almost 5000 jobs all over its China, India and other overseas offices. Whereas, 4-6 months ago, before this lay-off, Oyo was planning to widen its market in various countries, including the states.
Recently, Oyo has seen making various changes over the company, and its different altogether. In India, Oyo has combined teams of Town House, Oyo, and Cloud Kitchen Businesses. Besides, it is also looking to lessen its co-living business Oyo Life. Oyo had also cut down 50% of its cloud kitchen workforce.
Alongside this, Oyo had also restructured its C suit. Oyo former CEO Aditya Ghosh is replaced with Rohit Kapoor whereas, Aditya is now Oyo’s board member. McKinsey’s Ankit Gupta is now Oyo’s COO and Sr. VP, along with handling Frontier Businesses for India and South Asia regions.
Lately, the whole world is in battle with the coronavirus outbreak. Oyo founder Ritesh Agarwal understanding the situation has announced that Oyo will offer its homes and rooms to set up as quarantine centers. Ritesh tweeted and suggested that he would be open to transforming Oyo rooms to quarantine centers.
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