Government - backed India Homes & Hotels original business model of aggregating and branding small budget hotels in India ’s highly fragmented market made sense , but since it started investing in bricks and mortar and renting rooms from hotel owners its model has started looking more like WeWork ’s . SoftBank Group's recent $6.4 billion third-quarter loss from massive writedowns of its investment in WeWork and other companies dramatizes the extent to which it now existentially depends on paper valuations and gains in companies like Oyo whose real market value can only be guessed. This year , Oyo has acquired Swiss - based vacation rental company @Leisure Group for an estimated € 369.5 m , Hooters Hotels in Las Vegas for $ 135 m and an 80 % stake in MDI , a Japanese rental apartment operator , which reportedly cost over $ 100 m . Investing in property and low occupancy risk , it too has shockingly small revenue and a heady valuation , according to the Nikkei Asian Review . Oyo , which entered the co - working market earlier this year , received almost $ 1bn via SoftBank 's Growth Fund .
Government - backed India Homes & Hotels original business model of aggregating and branding small budget hotels in India ’s highly fragmented market made sense , but since it started investing in bricks and mortar and renting rooms from hotel owners its model has started looking more like WeWork ’s . This year , Oyo has acquired Swiss - based vacation rental company @Leisure Group for an estimated € 369.5 m , Hooters Hotels in Las Vegas for $ 135 m and an 80 % stake in MDI , a Japanese rental apartment operator , which reportedly cost over $ 100 m . Investing in property and low occupancy risk , it too has shockingly small revenue and a heady valuation , according to the Nikkei Asian Review . Oyo , which entered the co - working market earlier this year , received almost $ 1bn via SoftBank 's Growth Fund .