LatamList – SoftBank, the Japanese tech giant, is to invest part of its $5B Innovation Fund into Oyo’s Latin American hotels. The hospitality chain has come under increasing financial difficulty due to the global pandemic.
Oyo is India’s largest hotel chain, and has properties across India, China, and Latin America. After laying-off many employees earlier this year, the company continues to struggle financially.
The pandemic forced the company to lay off 500 employees in Brazil, sell office spaces, and reduce operating expenses.
SoftBank, a long-term investor in the company, will take over 1,000 hotels across the region under a new company called Oyo Latam. Oyo will remain involved, with an equal representation on the board.
SoftBank previously invested $75M into Oyo’s business operations in the region from its Latam fund, according to sources. The Japanese firm declined to comment.
Read more on Reuters.