Huge Influx of Cash Sought for Hospitality Chain Oyo of India.
In a startling and completely unexpected move this week, the Japanese finance corporation SoftBank Group has announced a tentative semi-merger with the startup hospitality chain Oyo of India. Initial reaction on exchanges in both China and India indicate positive responses to this further evidence of Sino-Indo corporate cooperation and merging. The deal calls for SoftBank Group to provide over a billion dollars in refinancing capital so Oyo can refurbish some of its hospitality strategies to maximize their money making potential. Ritesh Agarwal, who started the company just over a year ago and is the current CEO, has promised his own resources to help Oyo become one of the main players in the hospitality industry in India. Reports are that he intends to contribute around seven hundred million dollars of his own funds to help things along.
This amazing cash infusion is going to used primarily to open up new hospitality markets in the United States and in countries belonging to the European Union.
Other players in this massive financial scheme, according to Agarwal, include Sequoia Capital and Lightspeed Ventures. The amount of their contributions has not been announced yet, but apparently they intend on being serious players. While the world-wide hospitality market has taken a slight dip in the past six months due to escalating international tensions, financial advisers in both Asia and Europe are telling investors that hospitality enterprises still represent one of the safest and surest investments when it comes to the entire service industry portfolio.