Oyo’s Singapore unit receives $204m term loan from SoftBank’s UK arm

“Hospitality major Oyo’s Singapore subsidiary Oyo Hotels (Singapore) has received US$204 million from SoftBank’s UK arm SB Investment Holdings (UK),” reported Entrackr, citing regulatory filings in Singapore.

Details:

• The new funds will be used to boost Oyo’s operations which have been hit by the effects of the Covid-19 pandemic. The deal, which is to be completed now, was initially planned for 2020.
• The filings also showed that Oyo repaid US$430 million to SB Investment. “This is a past refinancing through a prior loan transaction agreed for execution during the pandemic for strengthening our balance sheet,” Oyo’s spokesperson told Entrackr.

Context:

• Oyo was valued at US$9 billion after it raised US$7.4 million in funding from Hindustan Media Ventures as part of the company’s series F1 round earlier this year.
• Oyo’s founder Ritesh Agarwal previously said the firm had close to US$1 billion in cash and set its sights on an initial public offering without giving out the timeline.