Oyo denies seeking bankruptcy after $22,000 claim

Oyo Inns founder Ritesh Agarwal took to Twitter to reject experiences the lodging and trip dwelling rental startup has filed for chapter after a provider’s $22,000 declare.

The entrepreneur tweeted Wednesday his firm had initially disputed an unidentified provider’s declare for 16 lakh rupees or about $22,000, however ultimately paid “below protest.” Agarwal, additionally Oyo’s chief govt officer, was responding to a doc broadly circulated on social media he stated appeared to point out his startup had sought chapter safety, which he referred to as “completely unfaithful.”

Oyo has declined to remark additional on a authorized matter, in accordance with a press release he retweeted.

Oyo, one of many bigger startups in SoftBank Group Corp.’s portfolio, was struggling to restructure and whittle down loss-making operations even earlier than the pandemic obliterated journey. Its breakneck enlargement, inspired and financed by SoftBank founder Masayoshi Son, led to operational missteps and soured partnerships. The corporate ended up shedding or furloughing 1000’s of staff. It reached a valuation of $10 billion earlier than international lockdowns within the wake of Covid-19.

In December, Agarwal was stated to have informed staff the Indian startup was making progress towards recovering from the coronavirus fallout and had about $1 billion to fund operations till an preliminary public providing. Agarwal tweeted on Wednesday that the startup’s enterprise was recovering steadily and its largest markets had been worthwhile.

Source link