OYO valuation drops by $2 billion — But it is the smallest drop compared to other hotel chains

  • 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.

Even after the 20% drop in valuation OYO Rooms remains the third most valued Indian startup after Vijay Shekhar Sharma’s PAYTM ($16 billion), and BYJU’s ($10.5 billion).

Here is the chart showing the percentage drop in the hotel chain industry after COVID-19 lockdown:

chart showing percentage drop in hotel chain industry firms 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”.


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.

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