SoftBank pulls out of Latin America partnership with Oyo Hotels
The Latin American unit of Oyo rooms has ended its joint venture with the SoftBank Latin America Fund, less than 6 months after they struck a partnership in the region, both companies confirmed recently. Oyo's business in Latin America, known as Oyo Latam, which will follow a digital-only model now, requiring to lay off nearly its entire staff.
SoftBank Group has poured $75 mn into Oyo in Latin America, part of its more than $1 bn 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.
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.