- OYO’s valuation had soared to $10 billion in November 2019, When Ritesh pumped in $2 billion into the company.
- Due to this COVID-19 pandemic, OYO’s valuation dropped by $2 billion and reached $8 billion.
- After the drop in OYO’s valuation, OYO will be the third most-valued Indian startup after Paytm ($16 billion) and Byjus ($10.5 billion)
During this coronavirus pandemic, many hospitality industries got crashed and faced heavy losses in their businesses. Due to COVID-19, OYO’s valuation has been dropped by $2 billion and now it has reached $8 billion, according to the latest report by Hurun.
However, Other major hotel chains like Indian Hotels Co, Lemon Tree, and other few have a huge fall on their valuation compared to OYO’s valuation.
Here is the chart showing the percentage drop in the hotel chain industry after COVID-19 lockdown:
According to the Hurun Report, the fall in the valuation of OYO rooms during this COVID-19 has been marked in line with the AirBnB market valuation.
“We took into account the post-COVID-19 scenario and we have adjusted the valuation of some hotel chain businesses. Hospitality, it’s a no brainer, it is one of the highly impacted sectors. Airbnb has downgraded its valuation and we have taken a conservative in-line approach of reducing the valuation in terms of the nearest comparable data”.said, HURUN REPORT, INDIA MD and CHIEF RESEARCHER ANAS RAHMAN JUNAID.
Furthermore, the OYO rooms’ valuation got increased to $10 billion in 2019, when the founder and CEO Ritesh Agarwal pumped in $2 billion into the company.
Moreover, In a video message to its employees, Ritesh Agarwal said that he cannot imagine the downfall in any other industry compared to the hotel/hospitality due to this COVID-19 pandemic.