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SoftBank-backed Oyo hit by plunging valuation in Japan

Oyo Life to transfer employees as strategy shifts from growth to profitability

Oyo is rethinking its Japanese residential business as SoftBank emphasizes profitability over growth. (Photo by Ken Kobayashi)

TOKYO -- The Japan residential unit of India's Oyo Hotels & Homes has suffered a dramatic drop in valuation after its joint venture partner sold its $77 million stake for a nominal $3.

The sale by Z Holdings, a SoftBank Group affiliate, of its stake in Oyo Life for just 339 yen reflects the seismic shift in startup valuations following the collapse of the WeWork float last autumn. Since then, Oyo and other SoftBank-backed startups have been forced to prioritize profitability over growth.

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