Oyo‘s private market valuation has fallen to around $6.5 billion after reports that SoftBank lowered the valuation of the hotel and travel technology company in its private books, according to industry officials.

In the week ended September 30, 2022, the company sold nearly 12.3 lakh shares on the private market, compared with more than 1.6 lakh the previous week.

According to media reports, SoftBank, its biggest investor, has cut the hotel platform’s valuation by 20% to a book value of $2.7 billion.

When OYO updated its financials in its draft prospectus last month, in addition to narrowing losses, it reported positive EBIDTA. The company’s share price in the private market had risen to Rs 94 per share.

However, in the following reports that SoftBank had cut OYO’s valuation, the company’s valuation fell nearly 13% to Rs 81 per share, media reported.

Last month, OYO reported in a regulatory filing that its revenue was Rs 1,459.32 crore for the three months ending June 30, 2022.

The company, which raised Rs 8,430 crore in its initial share offering in a preliminary filing with Sebi in October last year, also posted an “adjusted EBITDA” of Rs 7.27 crore for the quarter ended June 30, 2022, higher than the adjusted EBITDA of Rs 7.27 crore. EBITDA loss for FY22 was Rs 471.72 crore.

According to the filing, OYO restated a loss of Rs 413.87 crore for the three months ending June 30, 2022. Loss of Rs 1,939.8 crore for the financial year ending March 31, 2022.

OYO said its total number of “storefronts” fell to 1,68,012 for the quarter ended June 30, 2022, from 1,68,639 on March 31, 2022, and the number of hotels fell to 12,668 quarter-on-quarter. 17,994 for the fiscal year ending March 31, 2022.

OYO was initially valued at around $10 billion when it filed a draft IPO prospectus but has since settled at a lower valuation of around $7-8 billion.