Oyo denies looking for chapter after $22,000 declare

Oyo Hotels founder Ritesh Agarwal took to Twitter to reject reviews the lodging and trip residence rental startup has filed for chapter after a provider’s $22,000 declare.
The entrepreneur tweeted Wednesday his firm had initially disputed an unidentified provider’s declare for 16 lakh rupees or about $22,000, however ultimately paid “under protest.” Agarwal, additionally Oyo’s chief govt officer, was responding to a doc extensively circulated on social media he mentioned appeared to indicate his startup had sought chapter safety, which he referred to as “absolutely untrue.”
Oyo has declined to remark additional on a authorized matter, based on a press release he retweeted.

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— Ritesh Agarwal (@riteshagar) April 7, 2021
 
Oyo, one of many bigger startups in SoftBank Group Corp.’s portfolio, was struggling to restructure and whittle down loss-making operations even earlier than the pandemic obliterated journey. Its breakneck enlargement, inspired and financed by SoftBank founder Masayoshi Son, led to operational missteps and soured partnerships. The firm ended up shedding or furloughing 1000’s of staff. It reached a valuation of $10 billion earlier than world lockdowns within the wake of Covid-19.
In December, Agarwal was mentioned to have instructed staff the Indian startup was making progress towards recovering from the coronavirus fallout and had about $1 billion to fund operations till an preliminary public providing. Agarwal tweeted on Wednesday that the startup’s enterprise was recovering steadily and its largest markets had been worthwhile.