“Absolutely false” – Ritesh Agarwarl of Oyo denies bankruptcy request after claim of Rs 16 lakh

Ritesh Agarwal file image | Samyukta Lakshmi | Bloomberg

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Bangalore: Oyo Hotels founder Ritesh Agarwal took to Twitter to dismiss reports that the vacation home rental and accommodation startup filed for bankruptcy after a $ 22,000 claim of a supplier.

The entrepreneur tweeted on Wednesday that his company initially contested an unidentified supplier’s claim for 16 lakh rupees or around $ 22,000, but ultimately paid “under protest”. Agarwal, also CEO of Oyo, was responding to a document widely circulated on social media which he said appeared to show his startup had filed for bankruptcy protection, which he called “absolutely bogus.” .

Oyo declined to comment further on a legal matter, according to a statement he retweeted.

Oyo, one of the largest startups in SoftBank Group Corp.’s portfolio, was struggling to restructure and reduce loss-making operations even before the pandemic wiped out travel. Its meteoric expansion, encouraged and funded by SoftBank founder Masayoshi Son, has led to operational missteps and soured partnerships. The company ended up laying off or laying off thousands of employees. It reached a valuation of $ 10 billion before global lockdowns in the wake of Covid-19.

In December, Agarwal was noted telling employees that the Indian startup is making progress towards recovering from the coronavirus fallout and has around $ 1 billion to fund its operations until an initial public offering. Agarwal tweeted on Wednesday that the startup’s business is picking up steadily and its largest markets are profitable. – Bloomberg

Read also : Oyo is in trouble in Japan but parent SoftBank has a plan to fix it

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