December 8, 2021

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India Lodge Startup Oyo CEO Agarwal Denies Bankruptcy Experiences

Photographer: Tomohiro Ohsumi/Getty Photos

Oyo Motels founder Ritesh Agarwal took to Twitter to reject experiences the lodging and holiday vacation dwelling rental startup has submitted for bankruptcy soon after a supplier’s $22,000 claim.

The entrepreneur tweeted Wednesday his corporation had in the beginning disputed an unidentified supplier’s assert for 16 lakh rupees or about $22,000, but at some point paid “under protest.” Agarwal, also Oyo’s chief executive officer, was responding to a document commonly circulated on social media he reported appeared to present his startup had sought personal bankruptcy safety, which he referred to as “absolutely untrue.”

Oyo has declined to remark further more on a lawful make any difference, according to a statement he retweeted.

Oyo, a single of the more substantial startups in SoftBank Group Corp.’s portfolio, was having difficulties to restructure and whittle down decline-generating functions even before the pandemic obliterated travel. Its breakneck enlargement, encouraged and financed by SoftBank founder Masayoshi Son, led to operational missteps and soured partnerships. The corporation finished up laying off or furloughing countless numbers of personnel. It attained a valuation of $10 billion just before worldwide lockdowns in the wake of Covid-19.

In December, Agarwal was claimed to have explained to employees the Indian startup was generating progress towards recovering from the coronavirus fallout and had about $1 billion to fund operations till an first community giving. Agarwal tweeted on Wednesday that the startup’s business was recovering steadily and its largest markets ended up rewarding.