Oyo Corp., the Gurgaon, Haryana-based Indian multinational budget vacation rental online marketplace, and the Japanese tech investment conglomerate SoftBank had issued a joint statement on Thursday saying that the JV of Oyo Corp.’s LATAM unit and SoftBank had ceased to exist, adding further pain in to the pandemic-battered Indian online vacation rental company.
On top of that, latest SoftBank move to pull out of its Latin American partnership with Oyo LATAM, Oyo Corp’s South American unit, came forth less than six months after they had cut a deal to kickstart a partnership in the region, largely in a bid to flesh up the pandemic-hurt vacation rental’s boardwalks in the region.
Apart from that, latest joint statement from SoftBank and Oyo Corp, founded back in the 2013s by Ritesh Agarwal, 27, the world’s second-youngest billionaire, was brought into light a day after Oyo Latam had said in statement that its entire LATAM business would shift into an online-only model, while it had also decided to lay off nearly all of its staffs in the region.
Softbank pulls out of Oyo Latam JV after Oyo shifts regional businesses online
Besides, a spokesperson for Oyo was quoted saying on Wednesday that the hotels in the region would be allowed to capitalize on Oyo’s brand, but the region’s operations would be maintained directly from the vacation rental company’s home base in India.
Aside from that, a spokeswoman for Oyo Latam said following the statement, “The Latin American joint venture (with SoftBank) has ceased to exist. It was another adaptation due to the pandemic,” adding Oyo’s businesses would still be operational in the region.
Concomitantly, SoftBank, which had said later last year that the Japanese tech investment conglomerate would participate in a more direct role in the pandemic-hurt vacation rental start-up to manage roughly 1,000 Oyo hotels in Latin America, said in a separate statement late in the day that its latest move to scarp Oyo Latam JV came as a joint decision alongside Oyo, mostly due to a pandemic-induced holocaust in an economic landscape that had wreaked widespread havocs on travel and entertainment industry across the globe.