The Covid-19 pandemic has slowed many businesses worldwide, and the Indian budget hotel chain Oyo was one of the hardest hit by its effects. Matters had started looking good, and suddenly the pandemic caused it to decline by about 60%. The situation has been looking quite ugly, but there is light at the end of the channel following reports about Microsoft’s interest to invest in Osho.
Osho might use Microsoft cloud services
Osho moves into a deal that might compel it to turn to the use of Microsoft’s cloud services if matters go as planned. This report isn’t yet official, and thus persons disclosing the details want their identities kept anonymous.
Back in 2019, reports showed Osho’s valuation, placing the figure at about &10 billion. It is essential to mention the significant inroads Osho has made so far, including Europe, Southeast Asia, and the US, in recent years. Analysts say that the pandemic wasn’t the only factor to blame as a setback for the Oyo. They point out other factors such as a lapse in governance and toxic culture as part of the factors that have slowed down its growth.
The pandemic and its effects
The startup had started working towards enhancing its relationship with hotel owners, but the pandemic got in the way. Most of the governments enforced lockdowns and other measures targeted at combating the effects of the disease. As a result, it couldn’t continue with its plans and was even forced to lay off thousands of workers. As a result, growth slowed down significantly, and the effects continue to be felt.
Microsoft and Oyo founder and chief executive Ritesh Agarwal opined, “The pandemic hit the seven-year-old startup like a cyclone. We built something for so many years and it took just 30 days for it drop by over 60%.”
Talks between Osho and Microsoft happen to be in the advanced stages, with the startup being valued at about $9 billion. The deal might come to a close on Friday.
