INTERNATIONAL - SoftBank-controlled Yahoo Japan has pulled out of a Japanese apartment rental venture with Oyo Hotels and Homes, in the latest setback for the loss-making Indian startup.
Yahoo Japan said it exited the venture Oyo Life, in which it had a 33.9 percent stake, to focus on other initiatives. The internet firm has led a wave of consolidation in Japan this year, buying online fashion retailer Zozo Inc and scooping up messaging app operator Line Corp.
Oyo, also backed by SoftBank Group, on Thursday said it has bought the Oyo Life shares held by Yahoo Japan, now known as Z Holdings, for an undisclosed amount.
Oyo expanded rapidly in India and abroad by promising to drive up hotel occupancy through its online booking system, but has faced pushback from hoteliers who say they have been blindsided by hidden fees.
The startup has been forced to relax expansion targets in Japan, where it also launched a platform for hotel reservations this year and faced complaints over its booking system and unmet promises of payment for room renovations.