SoftBank-backed Oyo says annual loss grew over six-fold on China expansion

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SoftBank-backed Oyo says annual loss grew over six-fold on China expansion
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SoftBank-backed Oyo Hotels and Homes said on Monday losses widened more...

) Oyo Hotels and Homes said on Monday losses widened more than six-fold in the year to March 2019, as the India-based hotel chain spent heavily to expand into China.

Quarterly profit at SoftBank Group was almost wiped out as it faced losses at its $100 billion Vision Fund, its results last week showed, which came months after its bailout of loss-making startup WeWork. “Since China and other international markets were in development and investment mode during that time, they contributed to 75% of the losses,” Oyo said. However, the company’s gross margin in India improved year-over-year, it added.

The company had earlier reported revenues of around $58 million for the year ended March 2018, according to its annual report and regulatory filings, but its Monday statement and Tofler data showed revenue during that year was above $200 million.

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