Mid-way through 2019, hospitality startup OYO’s founder, Ritesh Agarwal, and Masayoshi Son, the head of its biggest backer, SoftBank, played out an elaborate game of startup kayfabe startup kayfabe The Ken OYO and the art of startup kayfabe Read more . The duo orchestrated a $1.5 billion investment round for the Gurugram-based company, which purports to be purports to be Business Standard OYO says it is world's third-largest hotel chain by room count Read more the world’s third-largest hospitality chain.
Can OYO save Ritesh Agarwal?
The Covid-19 pandemic gives OYO a chance to reset its business. The real question, though, is whether it will be enough for the company to save its CEO
Ritesh Agarwal and SoftBank CEO Masayoshi Son orchestrated a $1.5 billion investment round for OYO in mid-2019
Agarwal funded his share by borrowing $2 billion, backed by Masa's personal guarantee, from a consortium of Japanese banks
OYO is well-capitalised at the moment amid the Covid-19 storm, but surviving an existential threat for the next 12-18 months is not going to be enough
Agarwal is dependent on his company to rescue him from ending up in a situation where he is unable to repay his $2 billion loan