ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
SoftBank

SoftBank ends venture with India's Oyo Hotels in Latin America

Breakup comes less than six months after they struck a partnership in the region

SoftBank Group has poured $75 million into Oyo in Latin America, part of its more than $1 billion investment in the parent company. 

SAO PAULO (Reuters) -- The Latin American unit of Indian hotel startup Oyo Corp has ended its joint venture with the SoftBank Latin America Fund, less than six months after they struck a partnership in the region, both companies said on Thursday.

Oyo's business in Latin America, known as Oyo Latam, on Wednesday said it was moving to a digital-only model, and that the changes would require laying off nearly its entire staff.

SoftBank Group has poured $75 million into Oyo in Latin America, part of its more than $1 billion investment in the parent company.

Although hotels in the region can still operate under Oyo's brand, operations will now be managed directly from Oyo's home base in India, an Oyo Latam spokeswoman told Reuters.

"The Latin American joint venture (with SoftBank) has ceased to exist," she said, adding that did not mean Oyo was completely shutting down in the region. "It was another adaptation due to the pandemic," she said.

Japan-based SoftBank added the decision was made jointly with Oyo due to challenges brought about by the coronavirus pandemic, and that it would no longer invest in the company in the region.

In September, Reuters reported that SoftBank was taking a more direct role in the virus-hit hospitality startup through a joint venture in Latin America to manage roughly 1,000 hotels.

Oyo has struggled across its markets worldwide as the coronavirus crisis pummeled the tourism industry, and has drastically scaled back its workforce. 

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more