This refers to “Wrapped in mystery” by Nivedita Mookerji (July 25). The speed at which Oyo Rooms
and its founder Ritesh Agarwal are moving should draw the attention of regulators, financial institutions, investors and above all, the appropriate wing of the government. The validity of the WhatsApp message talking about “another financial scam waiting to explode” may not be justified as of now due to lack of evidence and may be brushed under the carpet in days to come. The mystery behind the speed of growth is really adding one layer above another.
The name of one investor — Lightspeed Venture — is also interesting. The speed of room acquisition, share buyback and IPO planning is raising the eyebrows of market watchers and the common people. Most surprising is that Oyo claims to be one of the largest hotel chains in the world with virtually negligible physical assets creation. I completely agree with Ms Mookerji that the modus operandi of the Oyo group and its founder has really left the audience perplexed. Let us not forget the rise and fall of Kingfisher Airlines, Barings Bank, Jet Airways and very recently, Nirav Modi and Mehul Choksi.
Sanjoy Dutta, Kolkata
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