News Update

Key Executives at Softbank-backed OYO Resign Ahead of IPO

• ByStartupStory     |    September 6, 2023

Two key executives at Oyo, the budget-hospitality startup, have left the company shortly before its planned public listing. Ankit Gupta, who served as Oyo’s India chief executive since joining the unicorn startup in 2019, and Mandar Vaidya, who led Oyo’s European business, have departed the firm. According to an Oyo spokesperson, their departures occurred six months ago.

These departures come as Oyo, backed by investors like SoftBank, Lightspeed, and Peak XV, has faced delays in its listing plans due to market conditions. The company is currently scheduled to proceed with its public listing later this year.

Originally, Oyo filed paperwork for its public listing in October 2021, with ambitions to raise as much as $1.6 billion and achieve a valuation of about $12 billion. However, it has since postponed its plans and revised the target raise to approximately $600 million, with a listing now planned for November.

These executive departures add to a series of challenges for Oyo, which was once valued at $10 billion. SoftBank, Oyo’s largest investor, reduced the value of its holding in the startup last year, valuing it at $2.7 billion.

Oyo has secured $3.23 billion in equity (both primary and secondary) and debt funding over the years, as reported by the insight platform Tracxn.

To fill the leadership void, Oyo has appointed Varun Jain as COO of Oyo India and Gautam Swaroop as CEO of Oyo Vacation Homes, taking over the roles left vacant by Gupta and Vaidya.

Follow Startup Story