At SoftBank’s Jewel in India: ‘Toxic’ Culture and Troubling Incidents – The New York Times

At SoftBank’s Jewel in India: ‘Toxic’ Culture and Troubling Incidents – The New York Times

Oyo is trying to expand globally and now offers more than 1.2 million rooms in 80 countries, including the United States. It employs more than 20,000 people and has raised more than $2.5 billion in funding. Mr. Agarwal has become a business star, hobnobbing with India’s prime minister, Narendra Modi.

But as Oyo has grown, its losses have mushroomed. The company expects to lose money through at least 2021, according to recent government filings. Some efforts to expand in countries like Japan have flopped.

In December, SoftBank and Mr. Agarwal put another $1.5 billion into Oyo to accelerate its expansion. The funding, negotiated over the summer, valued the company at $8 billion.

At the same time, two other big investors, Sequoia Capital and Lightspeed Venture Partners, reduced their holdings. The venture capital firms, which both hold board seats at Oyo, sold $1.5 billion of their stock — about half their stakes — to Mr. Agarwal. He borrowed money to buy the shares and paid the venture firms a price that valued Oyo at $10 billion.

Lightspeed and Sequoia declined to comment.

The current and former workers said that Oyo was never an easy place to work but that pressure increased over the last year.

Mohammad Jahanzeb Gul, who joined the start-up in January 2019 and supervised 23 Oyo properties, said that during the nine months he was there, he sometimes spent all day and night in front of a computer to meet deadlines.

Mr. Mukhopadhyay said that one night last June, a long-term guest at an Oyo-run property in Noida, near New Delhi, called him. She said three men had raped her in her room.

In a telephone interview, the guest confirmed Mr. Mukhopadhyay’s account. Oyo disputed some details and said any decision to file a complaint was up to the guest. The Noida police said they had no record of a complaint.

This content was originally published here.

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