Have capital for 3-4 years; no plans to exit any market: Oyo’s Ritesh Agarwal
In China, Oyo's second-largest market after China, occupancy rates lowered to below 20 percent during the crisis and is currently at around 50 percent.
May 29, 2020 / 01:33 PM IST
Oyo Hotels and Homes has sufficient capital and currently does not plan on exiting any markets, the company's founder Ritesh Agarwal told Mint.
He said the company has over $1 billion in cash, which can help the businesses operate for at least three years.
"We have the necessary capital runway beyond 3-4 years, considering the cost restructuring and the minimal revenue estimates that we expect. We do not anticipate raising any more capital," Agarwal said.
Oyo's business has taken a massive hit due to the COVID-19 outbreak and consequent lockdowns in its markets.
In China, Oyo's second-largest market after India, occupancy rates lowered to below 20 percent during the COVID-19 outbreak and is currently at around 50 percent, Mint reported. Before the outbreak, the occupancy levels were 60-65 percent.
The company, which has a presence in over 800 cities across the world, has recently announced salary cuts and sent many employees on furlough.
Oyo had laid off several of its staff in 2020 after its business in China took a dive due to the COVID-19 outbreak.