Ritesh Agarwal said: “We are not in the best place yet, there is much more work to be done.”
Ritesh Agarwal, founder and CEO of Oyo Hotels, told employees that the Indian startup is making progress in recovering from the consequences of the coronavirus and has around $ 1 billion to fund operations until an initial public offering.
The 27-year-old businessman made the remarks in a fireside chat with Oyo board member Troy Alstead after the once-high-flying company endured months of layoffs and losses as Covid-19 struck. your business. Oyo is one of the largest startups in the SoftBank Group Corp. portfolio, reaching a valuation of $ 10 billion before the recession.
Agarwal said the company’s focus is to drive revenue per available room at 60% to 80% of pre-pandemic levels in all markets. India, China, Japan and Southeast Asia are moving toward that rank, he added.
“We are not yet in the best place, there is much more work to be done,” Agarwal said, according to a transcript of the discussion seen by Bloomberg News. “We continue to hold close to $ 1 billion in cash, including all the companies in our group.”
Alstead, a former chief operating officer of Starbucks Corp., is an independent director. Board members also include SoftBank’s Gerry Lopez and Munish Varma.
Oyo’s dizzying expansion, encouraged and funded by SoftBank founder Masayoshi Son, led to operational errors and sour partnerships. The company ended up laying off or laying off thousands of employees, reducing its total workforce by two-thirds to about 10,000.
Agarwal told employees that he has not felt any pressure from outside shareholders as he has cut back during the pandemic. Investors have “very strong” representation on the board and directors provide information about the business, he said.
The young founder, who in a very unusual move borrowed $ 2 billion to buy stock in his own company, hinted that he wants to get the business in shape for a public offering.
“Our management’s focus is to make sure we have a well-designed, IPO-ready company available for our shareholders and board members to make the right decision,” he said.
(Except for the headline, this story has not been edited by NDTV staff and is posted from a syndicated channel.)
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