Hit by the Covid pandemic, Oyo said it would be using these funds to retire its past debts, strengthen the balance sheet and leverage the funds for other business purposes, including investment in product technology.
The outbreak of the Covid-19 virus had severely impacted the hospitality industry worldwide. OYO was also on the receiving end of the impact and saw close to 60% of its business wiped away in a matter of months. It also laid off close to 300 employees, towards the end of last year.
However, before the second wave of the pandemic in the country, Agarwal said that its gross margin was back to pre-covid levels.
SoftBank-backed Oyo Hotels is the largest hotel chain in India and its valuation has soared to $9 billion.
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