Oyo just spent $525 million to buy an american hotel brand in an all cash deal. But the question is why spend so much money at a time when your valuation is down 75% and you are planning to go public?

Well, Oyo thinks this acquisition will boost the confidence among its investors and help the company increase its valuation.

See this company G-6 hospitality that Oyo is acquiring has a Oyo is acquiring G six hospitality, a company with a network of 1500 hotels in the US and Canada. This acquisition is expected to significantly contribute to Oyo’s annual gross revenue of $1.7 billion. network of 1500 hotels in US and Canada and it generates an annual gross revenue of $1.7 billion.

So Oyo is literally acquired acquiring a money making machine. And while this is one side, another reality is that Oyos past experience of expanding into the US was not great.

In 2019, Oyo spent hundreds of millions of dollars to acquire and renovate over 300 hotels in the US, but most of this money had gone to waste as company faced various operational issues and ultimately scaled back most of its operations.

Read this also- Indian girl Harshita Arora went to America and created a company worth 800 million dollars? I am talking about this girl from UP.