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Oyo says SoftBank's Yahoo Japan has exited Japan room rental venture

Oyo, which is also backed by SoftBank Group Corp, said it has bought back the shares in Japanese apartment rental company.

Sam Nussey | Reuters  |  Tokyo 

This fresh round of funding is separate from the recent $1.5 billion share buyback orchestrated by Agarwal
Oyo has expanded rapidly in India and abroad by promising to drive up hotel occupancy through its online booking system.

India's Oyo Hotels and Homes said on Thursday SoftBank-controlled Yahoo Japan has quit its Japanese room rental venture, in the latest setback for the fast-growing, money losing startup.

Oyo, which is also backed by Group Corp, said it has bought back the shares in Japanese apartment rental company, Oyo Life, held by internet firm Yahoo Japan, now known as Z Holdings, for an undisclosed amount.

Oyo expanded rapidly in India and abroad by promising to drive up hotel occupancy through its online booking system, but has faced pushback from hoteliers who say they have been blindsided by hidden fees.

The startup has been forced to relax expansion targets in Japan, where it launched a hotel business this year that faced complaints over its booking system and promises of payment for room renovations.

First Published: Thu, December 19 2019. 12:00 IST
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