The Latin American unit of Indian hotel startup Oyo Corp has ended its joint venture with the SoftBank Latin America Fund.
SoftBank Group has poured $75 million into Oyo in Latin America in the parent company.
Although hotels in the region can still operate under Oyo’s brand, operations will now be managed directly from Oyo’s home base in India, an Oyo Latam spokeswoman told Reuters.
Oyo’s business in Latin America, known as Oyo Latam, on Wednesday said it was moving to a digital-only model, and that the changes would require laying off nearly its entire staff. Japan-based SoftBank added the decision was made jointly with Oyo due to challenges brought about by the coronavirus pandemic, and that it would no longer invest in the company in the region.