SoftBank cuts valuation of IPO-bound Oyo by 20% to $2.7 bn: Report

'We are confident that the speculations about valuation markdown are patently incorrect,' an OYO spokesperson said in a statement

SoftBank Group has slashed the valuation of Oyo Hotels on its books by more than 20 per cent as once high-flying start-up prepares for an initial public offering, people familiar with the matter said.

The Japanese investor, the largest shareholder in the hotel-booking firm, cut its estimated value for Oyo to $2.7 billion in the June quarter from an earlier $3.4 billion after benchmarking it against peers with similar operations, said the people, asking not to be named because the information isn’t public. The lodging firm had reached a valuation of $10 billion in a 2019 funding round.

Oyo, formally