OYO witnesses fall in their Net Worth
OYO, India’s leading hospitality chain has now witnessed a drop in its net value as per the reports by Hurran. The Hurran Global Unicorn Report 2020 has disclosed that OYO’s net worth dropped to $8 Billion from $10 Billion due to the pandemic.
The corona pandemic has affected every industry and the most affected was the travel and hospitality sector. People were restricted from traveling and staying anywhere other than their homes. The heightened health consciousness among the people is also another reason for the industry’s downfall.
OYO is the third most valued Indian startup after Paytm, an online payment service and Byju’s, an educational startup. Ritesh Agarwal, CEO of OYO has already said in his statement that their revenue dropped to 60% during March when the lockdown began.
Other than OYO several other hospitality chains like Indian Hotels Co, Lemon Tree, and Chalet Hotels have also witnessed a considerable loss in these critical times. Indian Hotels has suffered a 50% loss in their net worth, whereas Lemon Tree and Chalet Hotels have seen a 64% and 63% drop in their values respectively.
“We took into account the post COVID scenario and have adjusted the valuation of some of the businesses. Hospitality, it’s a no brainer, 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 Anas Rahman Junaid, Chief Researcher and MD of Hurran Report India.
