"If you screwed up that valuation so badly, what about all of the other companies in your portfolio?"
"That kind of fundraising apparatus is essentially unicorn porn."
Oyo is the other softbank company that is a scam.
Its a cheap hotel operator in India that has gotten plenty of landlords into debt, in return for pie in the sky dreams from the company. They bought the hooters hotel in Las Vegas!! SEE https://www.nytimes.com/2019/11/12/technology/softbank-startups.html In the latest round of financing, look at this fast one pulled by Masa Son
Even as SoftBank ran into trouble with WeWork, it helped push up the valuation of Oyo with an unusual funding round. In October, the Japanese company and Agarwal together chipped in, raising the valuation to $10 billion. SoftBank touted the startup as a bright spot when it took the writedown for WeWork, booking a valuation gain of 590 billion yen on 25 investments, of which Oyo was the only one named.
Yet it turned out that Agarwal, now 26, had borrowed $2 billion to finance his share of the purchase from financial institutions, including Japan's Mizuho Financial Group Inc., people familiar with the matter have said. Son himself personally guaranteed the loans to Agarwal, according to another person familiar with the matter.
In addition, two earlier investors in Oyo were Didi and Grab, the ride-hailing companies backed by SoftBank. That raises the question of whether money used to boost their valuations was then reused to hike the value of another SoftBank investment.-
AKA: A PONZI!!
After WeWork, SoftBank's Startup Bookkeeping Draws Scrutiny
by Peter Elstrom and Pavel Alpeyev
In some cases, SoftBank's involvement in multiple funding rounds helped drive up startup valuations that resulted in paper profits for Son's company.
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