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<ul><li>OYO founder <keyword id="1670338" type="PERSON" weightage="20" keywordseo="Ritesh-Agarwal">Ritesh Agarwal</keyword> was recently booked in a cheating case by a hotel owner in Bengaluru. </li><li>But there have been multiple such incidents across the country. </li><li>In the US too, OYO has been facing similar issues.</li></ul>OYO Hotels &amp; Homes, the Indian unicorn that has gone global seems to be going through a bad time. Founded by Ritesh Agarwal, OYO is on its way to hit its ambitious target of being the world’s largest hotel chain. It helps that they are already South Asia’s largest hotel chain by the number of rooms. OYO also recently launched OYO Partner Engagement Network (OPEN) through which it set up four regional Partner Advisory Councils which “provides a platform to discuss and determine micro and macro issues driving the future of hospitality in India”. Yet the past few months have been turbulent. From multiple FIRs to an uprising from hotel owners, OYO is now dealing with multiple cases. Cheating case against Agarwal and others Recently, a Bengaluru <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/cheating-case-against-oyo-founder-ritesh-agarwal-6-others/articleshow/71905131.cms">hotelier</a> filed a cheating case against Agarwal and six others claiming that the OYO hasn’t paid him his dues. According to the complaint, the hotelier has claimed that OYO was supposed to pay him ₹7 lakh a month for room bookings but failed to do so since May 2019. "Our lawyers are looking into the matter and will be taking strong legal action as these claims are incorrect and defamatory in nature. OYO Hotels &amp; Homes will initiate appropriate criminal proceedings against the Bengaluru owner who is sensationalising a civil dispute to attract attention. On studying a similar matter where an FIR was wrongfully filed in September, the honourable Karnataka High Court recently stayed the adverse actions via an injunction in Bengaluru. We, therefore, have strong reasons to repose our faith in the justice system," said a statement from OYO. OYO also claims to have an annual retention as high as 99.5% across the chain in India &amp; South Asia. Incidents at OYO Hotels Recently, a national level shooter was found dead in an OYO hotel reportedly due to electrocution. On the other hand, an employee in a Gurugram-based OYO hotel was also accused of <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/electrocution-case-oyo-says-it-is-cooperating-with-police-authorities/articleshow/71607725.cms">raping</a> a guest. In both cases, OYO has said that it is working with the authorities and helping with the investigation. Hotel owners’ rising rage Hotel partners have been raising their concerns about OYO for quite some time now, with some even calling it the <a href="https://www.firstpost.com/business/hotel-operators-who-partnered-with-oyo-call-it-biggest-online-fraud-demand-criminal-probe-against-softbank-backed-startup-7462021.html">‘biggest online fraud’.</a> Multiple protests have also been organised by hoteliers against OYO across the country. Most of the protests have been about clearance of dues. Another point <a href="https://www.businesstoday.in/current/corporate/as-softbank-oyo-booms-over-10000-hotels-cry-foul-and-check-out/story/383337.html">raised by hotel owners</a> has been that while OYO charges 20% franchise fee on room revenues, it ultimately takes more money through different sources that aren’t disclosed initially. Trouble in America too OYO, after having had a great run in China, also expanded to the US. It has even taken over a Hooters hotel in Las Vegas and rebranded it to be an OYO hotel. US-based media outlet <a href="https://skift.com/2019/10/24/budget-chain-oyo-can-be-a-nightmare-for-u-s-hotel-operators-despite-its-hype/">Skift</a> has reported that several hotel owners complained that OYO’s partner management system didn’t work properly along with non payment of dues. CCI investigation MakeMyTrip and Oyo’s commercial agreement is being investigated by the Competition Commission of India. The alleged dominance that they would enjoy is now under scanner. And prima facie, MakeMyTrip is identified as ‘dominant’ in the online travel market while OYO holds the same position in the hotels market. The joint effect of their partnership could alter the way the market operates. “OYO has been prima facie found to be a significant player in the ‘market for franchising services for budget hotels in India,” said the report. See Also: <a href="https://www.businessinsider.in/business/startups/news/why-makemytrip-and-oyo-are-in-trouble-with-the-cci/articleshow/71818051.cms">MakeMyTrip and Oyo are in trouble with the CCI, opening up a gray area for business partnerships in India</a>

Dues, death and an investigation — all that went wrong with OYO hotels in the last 6 months

<ul><li>The Competition Commission of India is probing into MMT and <keyword id="2808667" type="PERSON" weightage="20" keywordseo="OYO">OYO</keyword>’s deal for an adverse effect on competition in the market. </li><li>There is a thin line indeed between businesses which want to share benefits and those who want to control the market. </li><li>With the Indian digital penetration, is it time to bring in a new era of competitive businesses in India?</li></ul><keyword id="54613" type="COMPANY" weightage="20" keywordseo="makemytrip">MakeMyTrip</keyword> and Oyo’s commercial agreement has brought a new problem at their doors – the Competition Commission of India. The <keyword id="47183" type="ORGANIZATION" weightage="20" keywordseo="CCI">CCI</keyword> is now probing into their deal for a possible adverse effect on the market. The alleged dominance that they would enjoy is now under scanner. And prima facie, MakeMyTrip is identified as ‘dominant’ in the online travel market while OYO holds the same position in the hotels market. And the joint effect of their partnership could alter the way the market operates. “OYO has been prima facie found to be a significant player in the ‘market for franchising services for budget hotels in India’,” said the report. Both Oyo and MMT had begun their partnership in February 2018. In 2019 they renewed their partnership for five years. In an earlier conversation with Business Insider India, Deep Kalra, founder and chairman of MakeMyTrip, had said, “Oyo for us would be more a partner, because they are now on the supply side and the fastest growing hotel chain in the world. Like all other hotel chains, they also go direct, they aren’t selling other services. We have always seen competition in the market otherwise.” If CCI finds discrepancies, it could turn a precedent for several deals forged recently. Reliance Jio acquired music streaming app Saavn, which strengthened the latter’s position in the Indian market against competition like Gaana, Spotify and even the Airtel-backed Wink. As per an exclusive partnership, OnePlus phones come pre-installed with the Amazon app. There is a thin line indeed between businesses which want to share benefits and those who want to control the market. “There is a clear need of legal audit of all such agreements. Such partnerships should always and periodically be evaluated on the touchstone of AAEC. Unless the CCI establishes AAEC, it can’t bring a case against a party under section 3(4) of the Act,” said KK Sharma, Chairman, KK Sharma Law Offices &amp; ex-Director General and Head of Antitrust and Merger Divisions, CCI. We have a vertical relationship with MMT, says Oyo The Federation of Hotel and Restaurant Associations of India lodged a complaint against MMT and its acquired unit GoIbibo and Oyo Hotels and Homes. The complaint was against MMT-Go and Oyo’s alleged dominance in the market, predatory pricing. It also alleges that their commercial agreement has led to the presumable exclusion of other competitors on MMT’s platform. “Whether the commercial agreement between OYO and MMT entails preferential treatment to OYO and consequent exclusion of Treebo, Fab hotel and any other hotel chain and if so, the effect of the same on competition merits investigation,” the CCI order said. Oyo argued that it is not an online aggregator but a hotel chain which is listed on MMT and has a vertical relationship with the latter. “We will continue to cooperate with Hon’ble CCI’s investigation process as we review the complete order. We will actively engage with the Hon’ble Commission in this process,” said an OYO spokesperson.’ The CCI further said that any restrictive agreement which may lead to refusal to deal with some players or exclusive arrangement with some players, may have potential adverse effect on competition. “The problem is not merely because of there being an exclusive partnership. It is because of conduct much beyond this,” said Sharma. He further explained that the Commission has asked DG to examine violation of Section 3(4) of the Act. It means CCI has to establish that such conduct exists and if it does, if it can have an adverse effect on the competition. “Only after the above are established, can it be said that there is a violation of the provisions of the Act; and further only after the above are done, can the onus of proof move to the person against whom allegations are made,” said Sharma.

MakeMyTrip and Oyo are in trouble with the CCI, opening up a gray area for business partnerships in India

<ul><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> and <keyword id="2808667" type="PERSON" weightage="20" keywordseo="OYO">Oyo</keyword> have both been in the eye of many public controversies, stirred by industry bodies.</li><li>While Zomato has been in the middle of a <keyword id="7998183" type="UNKNOWN" weightage="20" keywordseo="logout-movement">logout movement</keyword> from restaurants, Oyo has been dealing with legal complaints against its founder for breach of trust. </li><li>This has affected the public branding and image of the companies.</li></ul><keyword id="476451" type="PERSON" weightage="20" keywordseo="Deepinder-Goyal">Deepinder Goyal</keyword> and <keyword id="1670338" type="PERSON" weightage="20" keywordseo="Ritesh-Agarwal">Ritesh Agarwal</keyword> maybe poster boys of the Indian startup industry. But,the founders of Zomato and Oyo are dealing with complaints from industry bodies, associations and even backlash from their own employees. Startups which have started to solve existing problems, are now facing their own. The problems surrounding Zomato and Oyo Zomato was caught in the throes of a very public controversy thanks to its deep discounting programmes like Zomato Gold (where consumers can avail 1+1 on food and 2+2 on drinks) and infinity dining. The National Restaurant Association of India (NRAI) launched a ‘logout’ movement last month claiming that the business practices of aggregators are unethical. The movement saw hundreds of restaurants delisting from the app. But that’s not the end of it. Zomato’s delivery executives across Mumbai and Bengaluru are protesting for pay cuts. The company is also in the news for reportedly laying off employees at its Gurgaon headquarters. Oyo is in no better position. On one hand, it is battling legal complaints from a Bengaluru-based hotelier accusing Agarwal of cheating and breach of trust. A month ago, hoteliers too had begun boycotting Oyo, but the Delhi High Court had ruled the case in the company’s favour. To tackle these issues, Zomato reportedly held several meetings with the NRAI. It also backtracked by cutting off discounts from its Zomato Gold programme. It has also put its recently launched Infinity Dining programme on a ‘pause’ mode. Oyo, on the other hand, has refuted all claims against its founder and has been unfazed through its expansion journey globally. The branding has taken a hit Startups and their success is important not just because of their disruptive nature, but their popularity has made them almost invincible with a ‘can-do’ attitude. These issues have come to prove that it is not the case. And, it has started to show. This is evident in its survey rankings. YouGov measures a brand by the buzz it generates in two weeks. Zomato’s Buzz fell by 6.8 points, from 42.7 in the beginning of July, to 35.9 in August end. “Zomato’s Brand Index score which is an average of quality, value, impression, reputation, satisfaction and recommend scores, has also fallen from 38.5 on 31st July to 34.9 on 31st August 2019, the time period marked by the two controversies,” said YouGov. This is a big blow for Zomato which is known for its witty, quirky marketing campaigns on and off-line that has caught the fancy of millennials. The company however said that its own internal tracking system shows no significant dip in perception in the last 3 months. "On the contrary, metrics such as trust, brand love, innovation, etc. have shown consistent upswing. These metrics are tracked diligently on a daily/weekly/monthly basis and none of the external noise has impacted our core consumer perception in a negative manner. In fact, we have noted a spike in the user engagement with an increase in average time spent on the app, session counts, weekly downloads, etc. These results from continuous monitoring have reaffirmed our current approach towards consumer engagement and product innovation,” said a Zomato spokesperson. Brand expert Harish Bijoor believes that Zomato and Oyo both need to be worried. “We live in the era of nano-second social media hurt. Every social media comment that is hurtful to the brand is a scar. Too many scars, and the brand can get into a negative tizzy. Brands need to be careful, and more importantly quick in their reactions to issues. Both Zomato and Oyo have been through this. As of now, the brand image has not been hurt. it has been jolted, but not damaged,” said Bijoor.

It's a stormy time for two of India's biggest startup brands

<ul><li>The CAIT is seeking probe and has alleged that <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> are avoiding a tax liability. </li><li>Meanwhile, <keyword id="2808667" type="PERSON" weightage="20" keywordseo="OYO">OYO</keyword>’s troubles continue with hotel owners alleging unethical practices followed by the company. </li><li>Following the <keyword id="92417" type="ORGANIZATION" weightage="20" keywordseo="NRAI">NRAI</keyword>’s path, the Indian Hotel and Restaurant Association (AHAR), which has 8,000 members nationally is also claiming to have logged out of <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword>. </li></ul>India’s biggest startups have been solving its systemic problems to build businesses. But the system has now started revolting and it could be another trouble that they have to solve. Startups like Oyo, Zomato, Amazon, Flipkart which have all disrupted traditional setup are now facing challenges that come with overtaking a market. Here’s a look at how trouble is brewing for the companies. Amazon and Flipkart Amazon and Flipkart are united in a rare case – where they both are facing a protest from the Confederation Of All India <keyword id="6371444" type="UNKNOWN" weightage="20" keywordseo="traders">Traders</keyword> (CAIT). While trader protests have been a part of the e-commerce journey so far in India, it has intensified with the CAIT now seeking a <a href="https://www.livemint.com/companies/news/cait-seeks-probe-into-alleged-avoidance-of-tax-liability-by-amazon-flipkart-11574620469832.html">probe </a>against Amazon and Flipkart. The CAIT alleged that Amazon and Flipkart are evading tax. It said that the companies are selling products for much lower than their fair price value, thus avoiding a larger GST cost. “Since FDI is governed by the FEMA and the Reserve Bank of India, it is demanded that an another enquiry may also be initiated on pattern of receivable funding and its disbursement," CAIT <a href="https://www.livemint.com/companies/news/cait-seeks-probe-into-alleged-avoidance-of-tax-liability-by-amazon-flipkart-11574620469832.html">said.</a> Earlier, the CAIT also organised a nationwide protest against the deep discounting of products on Amazon and Flipkart. OYO OYO brought Indian budget hotels online and shot to fame thanks to its many customers. But hotel owners who they work with are alleging that OYO’s practices are unethical. Recently, a Bengaluru hotelier filed a cheating case against Agarwal and six others claiming that the OYO hasn’t paid him his dues. According to the complaint, OYO was supposed to pay ₹7 lakh a month for room bookings but failed to do so since May 2019. OYO responded stating that it would fight back with a complaint against the hotelier for "using improper legal means to sensationalise a civil dispute and get attention". “This matter is currently sub-judice, and we are not at the liberty of commenting on specifics. Having said that, we strongly refute the claims made in the complaint that has been wrongfully filed against our founder and six other office bearers, based on false allegations and exaggeration on a regular commercial dispute,” the company said in a statement. The case of the Bengaluru hotelier is not isolated. Similar reports have surfaced from across the country against <a href="https://www.thenewsminute.com/article/why-many-hotel-owners-across-india-are-agitated-oyos-business-model-106154">OYO</a>. Zomato Indian foodtech unicorn has had a rough few months thanks to one of its bestselling features – Zomato Gold. The National Restaurant Association of India protested against the feature saying that Zomato advertised the ‘elite’ feature which turned out to be a mass product. This resulted in thousands of restaurateurs logging out of Zomato. The foodtech aggregator had shut down the logout movement by not offering discounts for its gold membership. However, it also extended the service for home delivery, where users could avail the 1+1 and 2+2 offers. Now, following the NRAI’s path, the Indian Hotel and Restaurant Association <a href="https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/8000-strong-hotels-body-to-shun-zomato-gold-delivery/articleshow/72215761.cms">(AHAR)</a>, which has 8,000 members nationally is also claiming to have logged out of Zomato because of Gold on delivery and other issues like unavailability of delivery executives.

Oyo, Zomato, Amazon, and Flipkart are chasing growth but the very foundation is shaking

Richard Drew/APRitesh Agarwal is the founder and CEO of Oyo.<ul class="summary-list"><li>SoftBank-backed Oyo fired 110 employees in the US citing their performance on April 1, Business Insider has confirmed. The company also put <a href="https://www.bloomberg.com/news/articles/2020-04-08/softbank-backed-oyo-is-furloughing-thousands-of-employees">thousands more employees</a> on paid leave to cut costs this week.</li><li>Some of those fired employees said they never had conversations about their performance with a manager before their sudden termination, leading them to question the reason.</li><li>Employees who currently or used to work at Oyo said sales had essentially become impossible amid the coronavirus and after negative articles damaged the company's reputation with hotels.</li><li>Oyo said the firings were based on performance in the first 90 days of their employment, and were unrelated to the recent furloughs.</li><li>People who were fired are being asked to sign separation agreements that will pay them severance if they agree not sue the company in a class-action lawsuit or speak publicly about their employment.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>The former "<a href="https://www.bloomberg.com/news/articles/2020-01-10/softbank-backed-oyo-is-firing-thousands-across-china-and-india?sref=BWbpWjRm">jewel</a>" of SoftBank's startup portfolio has had another shakeup.One week before its reported furloughs, Oyo quietly fired 110 employees in the US, saying they were being terminated based on performance, Business Insider has confirmed. Employees said those people affected were not on performance improvement plans before their firing, which made them question the reason for their sudden removal."They were saying, 'This is not a layoff. You are being terminated for performance,'" said an employee who was fired over the phone on April 1.Oyo confirmed the firings in an email, saying that the reductions were based on employees' ability to close a sale in their first 90 days of employment, and were not related to the <a href="https://www.bloomberg.com/news/articles/2020-04-08/softbank-backed-oyo-is-furloughing-thousands-of-employees">recent furloughs</a>.Still, people who currently or used to work at Oyo are arguing that the firings were part of a cost-cutting strategy as the startups rides out the coronavirus pandemic. The company's salesforce has struggled to make deals since before the outbreak because of its reputation in the hotel industry, multiple sources said. Some employees who were fired said they should have been laid off instead."Your sources seem unreliable as the details are incorrect," an Oyo spokesperson said in an email on Friday. "Specific to this instance, these terminations were performance-based, where sales team members, who generally had not made a single sale since December 9th of last year at least, including some who had not made a sale for more than 180 days, were impacted."Eight employees spoke to Business Insider on condition of anonymity because some signed nondisclosure agreements, and others were not authorized to speak publicly on Oyo.They said that the <a href="https://www.businessinsider.com/softbank-backed-oyo-layoffs-us-offices-2020-1">last round of layoffs</a> in the US, which Business Insider first reported in January, created a firestorm for Oyo. The startup sells to mostly independent motels and puts up money to redecorate and make sure the internet works, for a percentage on every reservation.The layoffs added to growing signs of trouble at Oyo, shaking its credibility with hotel owners and making it harder to close deals, according to some employees who were spared in January."It was a huge PR nightmare. They lost credibility with the owners," said one former employee. She said that any more news stories about "Oyo not being able to make it in America" would put the company out of business."They can't survive having another media story," said another source.OyoOyo gives independent hotel owners money for property improvements in exchange for a cut on every reservation made on Oyo's app.The Economic Times, a daily newspaper in India, <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/oyo-gives-pink-slips-to-us-staff/articleshow/75038719.cms">first reported the firings</a> at Oyo on Thursday.<h2>Oyo is slashing costs</h2>The big <a href="https://www.bloomberg.com/news/articles/2020-04-08/softbank-backed-oyo-is-furloughing-thousands-of-employees">news out of Oyo</a> this week was that the budget hotel chain was placing thousands of employees on paid leave for at least two months. The goal, said Oyo's founder and chief executive Ritesh Agarwal in a video message, is to cut costs now so it can put people back to work after the travel industry recovers from the economic shutdown.Those employees on furlough will earn 15% of their salary before taxes and deductions, and receive health benefits, according to a document sent to current employees on Thursday, which was seen by Business Insider.In the video message, which has since been <a href="https://www.youtube.com/watch?v=-1V3HE_2XOk&amp;feature=youtu.be">posted on YouTube</a>, Agarwal said the company would avoid layoffs."This situation of COVID-19 comes at a very unique time for Oyo. This is right after we had a sizable restructuring of our company in January of this year," Agarwal said. "Due to that, I want to clarify for all of you that we intend to do no or negligible layoffs as a part of cost restructuring across the world."Oyo's chief executive will also <a href="https://www.prnewswire.com/news-releases/ritesh-agarwal-founder--group-ceo-oyo-to-forego-100-of-his-annual-salary-and-the-executive-leadership-team-to-take-voluntary-salary-cuts-301034128.html">not take a salary</a> for the rest of the year. Other executives are following suit, Oyo said.<h2>The coronavirus pandemic has made closing sales a struggle, some former employees said</h2>Based in India, Oyo has raised $3.1 billion in equity from SoftBank, Sequoia Capital, and Lightspeed Ventures on the promise of rapid growth. After taking over <a href="https://www.bloomberg.com/news/articles/2019-06-19/hotel-unicorn-oyo-plots-300-million-push-into-the-u-s-market">more than 23,000 properties</a> around the world, the company opened its first office in Texas in early 2019 with the goal of duplicating its success in the US. Oyo hired a salesforce of hundreds to bring US motels onto its platform."The rough idea was, if we signed 'X' amount of hotels with 150 sales people, let's quadruple the number of sales people and we'll quadruple the number of hotels, which was a spectacular failure," said a former employee who left the company earlier this year."I think they way over-committed to what they were capable of," he said.Some of the employees who were fired on April 1 were told that they had not made a sale in their first 60 days of employment, which was grounds for termination. Those workers did not contest what their supervisors said.The task was near-impossible, they said.Employees said that the startup had difficulty signing on hotels <a href="https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/oyo-layoffs-have-hotel-partners-worried/articleshow/73348921.cms?from=mdr">because of its reputation</a>. A business development manager would walk onto a property and ask to speak to an owner, who had one of two reactions, they said. "One was, 'Yeah, I know who Oyo is. Not interested. Get out.' Response two was, 'Who's Oyo?'" a current employee said.A hotel owner who searched Oyo on the internet would find "nothing but negative articles," including <a href="https://www.nytimes.com/2020/01/02/technology/oyo-softbank-india.html">a report in The New York Times detailing its questionable business practices</a>, said the employee, who is being furloughed.In India, some hotel owners said that after they spent money to renovate their rooms to match Oyo's branding, they never received reimbursements they had been promised, the Times reported.Adnan Abidi/ReutersA sign making disparaging remarks about Oyo is placed outside a hotel in New Delhi, India.The startup also changed the terms it could offer hotel owners because of the coronavirus pandemic's effect on its business, according to current and former employees. They said Oyo used to give $1,500 per room on average for improvements, and has since lowered its capital expenditure to $300 a room. Revenue has dropped 50% to 60% since the outbreak, according to the startup.In recent months, the company <a href="https://tech.economictimes.indiatimes.com/news/internet/oyo-suspends-payments-to-hotels-partners-say-clause-not-in-contract/74958727">also suspended payouts to hotels</a> if they do not reach a certain number of bookings, known as a minimum guarantee payment. Still, Oyo increased its percentage cut on room reservations by several points, employees said."Nothing as far as the value of what we were offering increased," said a former employee who was fired last week.In a written statement, Oyo said that the salespeople who were fired had not made a sale in their first 90 days of employment, not 60 days. Most of those individuals started around the winter holidays, before the first cases of the novel coronavirus were confirmed in Wuhan, China. The virus wasn't <a href="https://www.businessinsider.com/who-declares-coronavirus-pandemic-covid19-2020-3">declared a pandemic</a> until early March.Some people had not made a sale in six months, an Oyo spokesperson said. The decision to fire people was based on their performance even before the outbreak worsened, according to Oyo."Performance management actions are periodic actions," they said. "There is clear communication to the sales team about the expectation to sign their first deal within 60 days, and disciplinary actions, including termination, after 90 days."<h2>'The document they sent me was hush money,' an employee said</h2>Oyo fired mostly business development managers across 32 states and Washington, DC, according to a separation and release agreement that was obtained by Business Insider.Now, those employees are being asked to sign separation agreements that will pay them one to two weeks salary if they agree not sue the company in a class-action lawsuit or speak out against Oyo, according to multiple sources and a copy of one of the agreements viewed by Business Insider."The document they sent me was hush money," said one former Oyo employee, who said he was fired for not closing a sale in his first 60 days of employment.Oyo is not required to pay severance to employees who are fired for cause."The company, however, went out of its way to provide a modest severance package," an Oyo spokesperson said."Also, recognizing the difficult timing of this action, Oyo has ensured that employees who rely on its benefits plans will continue to have coverage in both April and May."The company said it will cover 100% of the insurance premiums in May.Do you work at Oyo and want to share your story? Contact this reporter via encrypted messaging app Signal at +1 (603) 913-3085 using a nonwork phone, email at mrussell@businessinsider.com, or Twitter DM at @meliarobin.Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email <a href="mailto:covidtips@businessinsider.com">covidtips@businessinsider.com</a> and tell us your story.Get the latest <a href="/coronavirus-business-impact">coronavirus business &amp; economic impact analysis</a> from Business Insider Intelligence on how COVID-19 is affecting industries. <h3>NOW WATCH: <a href="https://www.businessinsider.com/what-could-be-fastest-way-end-coronavirus-crisis-2020-4">What could be the fastest way to end the coronavirus crisis?</a></h3>

Oyo, the former 'jewel' in SoftBank's startup portfolio, quietly fired 110 people based on their performance. Some fired workers say it was basically impossible to close sales, and the company is only offering severance if they agree to not speak out.

<ul><li>The Indian government mandated that commercial establishments must pay wages without deductions. </li><li>However, several companies already implemented pay cuts to keep up with operational costs. </li><li><keyword id="277037" type="PERSON" weightage="20" keywordseo="Rituparna-Chakraborty">Rituparna Chakraborty</keyword>, EVP &amp; co-founder at <keyword id="6381892" type="COMPANY" weightage="20" keywordseo="TeamLease-Services">TeamLease Services</keyword> told Business Insider that in all possibilities, “the senior officials shall bear more of the brunt than others”. </li><li>There is an extent to which industry can fund unemployment insurance, she said.</li></ul>The Indian government mandated that all commercial establishments must pay wages without deductions. However, several companies already implemented pay cuts to keep up with operational costs when businesses are closed. As per directives of the<a href="https://mha.gov.in/sites/default/files/MHA%20Order%20restricting%20movement%20of%20migrants%20and%20strict%20enforement%20of%20lockdown%20measures%20-%2029.03.2020.pdf"> Ministry of Home Affairs (MHA)</a>, “all the employees, be it in the industry or in the shops and commercial establishments, shall make payment of wages, on the due date, without any deduction, for the period their establishments are under closure during the lockdown.” ‘Senior officials will possibly bear the brunt of salary cuts’ But the reality is far from that. A recent survey of CEOs, that included over 50 Indian startups, shows that <a href="https://qz.com/india/1830676/salary-cuts-arrive-at-indian-startups-amid-the-coronavirus-slump/">one in four startups in India already announced pay cuts</a>. And, a third of them are considering doing so. Goibibo and redBus also slashed employee salaries. Rituparna Chakraborty, EVP &amp; co-founder at TeamLease Services says that organisations will implement a ‘balanced approach’ while deciding on who will get impacted by the move to cut wages. “In all possibilities, the senior officials shall bear more of the brunt than others,” she said. Meanwhile, startups like Droom, MakeMyTrip (MMT), ixigo axed jobs too amid the lockdown. Founder Deep Kalra also <a href="https://www.businesstoday.in/current/corporate/startups-cut-jobs-salaries-as-coronavirus-impact-businesses/story/399971.html">told</a> Business Today that pay cuts would happen across top and managerial levels at MMT. Travel, tourism, aviation and hospitality are likely to be worst hit. On the other hand, airlines, which are the worst hit due to the <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">Coronavirus</keyword> pandemic, have trimmed employee salaries by up to 30% -- including their chairmen. However a few large groups like Tatas announced that all their working - including contractual employees - will be paid in full. Can the government really intervene? Chakraborty said that the government policies under the Industrial Disputes Act 1947 covers employees (and apprentices) working at salaries less than ₹15,000 per month. It however excludes those employed mainly in a managerial or administrative capacity. Considering that, “the scope of payment of wages shall extend to regular, casual and contractual workers. To that extent, the government has authority to intervene in employment practiced by the private firms. However any action taken by the private firms which is in line with the provisions available to them -- the necessary authorities cannot intervene,” Chakraborty explained. In most cases, lowest paid employees have been shielded from pay cuts. Do businesses have other options? A few organisations can safeguard their employees from bearing the brunt of the pandemic. But even those which can, will not be able to take the hit for a long time. Since there is uncertainty around Covid-19 and its possible impact, more pay cuts and job cuts are in the offing. “Some organisations can give away the salaries if they have deeper pockets. However the question is, for how long and are they willing? There is an extent to which industry can fund unemployment insurance. In the long run, organisations cannot afford to bear the burden of unemployment insurance fully,” Chakraborty added. The nationwide lockdown has already taken a toll on government and private companies alike. If it continues, cash conservation will be a top concern for organisations. “If India's is unable to flatten the curve of the spreading the disease it is a possible eventuality that companies will cut salaries further. However, organisations would do their best to avoid it till it becomes absolutely imperative,” says Chakraborty. Even <a href="https://www.businessinsider.in/india/news/after-telangana-maharashtra-announces-60-pay-cut-for-government-employees/articleshow/74912477.cms">state government employees have had to forfeit salaries</a> in view of the pandemic. On April 9, Maharashtra government said that it will cut salaries of all its MLAs by 30% for the entire year, starting this month. Earlier, Telangana, Andhra Pradesh and Rajasthan have announced deferment of payment of full salaries to the chief minister, officers and other state employees, owing to the falling revenues and increased costs of healthcare. See also: <a href="https://www.businessinsider.in/politics/india/news/maharashtra-to-cut-salaries-of-all-its-mlas-by-30-for-the-entire-year/articleshow/75064785.cms">Maharashtra to cut salaries of all its MLAs by 30% for the entire year</a> <a href="https://www.businessinsider.in/business/startups/news/ritesh-agarwal-to-take-a-100-pay-cut-oyo-sets-up-a-welfare-fund-for-coronavirus-hit-hotel-partners/articleshow/74950054.cms">Ritesh Agarwal to take a 100% pay cut, OYO sets up a welfare fund for Corona-hit hotel partners</a>

There is a government directive against salary cuts in private companies —  but can they be stopped?

<ul><li>Big Indian startups have been in the public eye for many controversies thanks to the concerns raised by various <keyword id="946463" type="PERSON" weightage="20" keywordseo="industry-bodies">industry bodies</keyword>. </li><li>From ban on sales to stopping discounts, industry bodies have picked a fight against startups. </li><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword>, Oyo, Flipkart and Amazon have all been affected by the same. </li></ul>Indian startups have a growing problem at home – industry bodies from different sectors are now up in arms against discounts and deals. From Zomato and Oyo to Flipkart and even the global retail giant Amazon is caught in a fight. Here’s a look at all that’s gone down between industry bodies and startups in just the last month. Restaurants vs online aggregators All seemed to be going well between Indian restaurateurs and online aggregators until last month. The National Restaurant Association of India, which has over 500,000 outlets as members, woke up to the many deals presented by the likes of Zomato, <keyword id="6358977" type="UNKNOWN" weightage="20" keywordseo="swiggy">Swiggy</keyword>, EazyDiner, Dineout etc., and said that the excessive discounts offered by the delivery apps are throttling their businesses. Zomato bore the brunt of the restaurants’ ire – from the logout movement to social media uproar from hoteliers It had also faced protests from its delivery executives, who were not happy with the pay cuts from the aggregator. The foodtech unicorn paused on its Infinity Dining feature and curtailed the Zomato Gold program but the restaurants remain animus towards the firm. Despite many attempts to thaw in the frosty relationship there is no resolution yet for Zomato and Swiggy. Hotel associations against Oyo Oyo Hotels &amp; Homes in the past few years has grown at a rapid pace to have its signboard up in every big city, and many small towns-- adding up to 270,000 rooms across the country. But in its fast acquisition of buildings and hotels, some traditional hoteliers have raised concerns about ‘illegal practices’. Oyo is battling legal complaints from a Bengaluru-based hotelier accusing Ritesh Agarwal, the founder, of cheating and breach of trust. A month ago, hoteliers too began boycotting Oyo but the Delhi High Court ruled the case in favour of the $5 billion startup. The good ol’ e-commerce fight Indian e-commerce has long been in the eye of public dissent from industry bodies. The likes of Flipkart and Amazon were the first to be hit because of their deep discounting which allows them to acquire customers faster. With the festive season around the corner, Flipkart and Amazon both have massive sales coming up. Flipkart is in fact getting ready with its annual sale – The Big Billion Day Sale. However, now the Confederation of All India Traders is demanding a <a href="https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/ahead-of-diwali-sale-cait-says-ecomm-giants-flouting-rules/71167595">ban </a>on these sales. The CAIT is an industry body for over 7 crore traders. The body has alleged that the two e-commerce giants are violating the Foreign Direct Investment rules with their massive ad campaigns. It has also written to Union Minister Piyush Goyal regarding the same.

India’s biggest startups are faced with growing resistance from industry bodies

<ul><li><keyword id="6356684" type="UNKNOWN" weightage="20" keywordseo="patanjali">Patanjali</keyword> chairman Archarya Balkrishna’s estimated net worth was cut down by a third in 2020.</li><li>He now ranks 919th on the <keyword id="424923" type="PERSON" weightage="20" keywordseo="Hurun-rich-list">Hurun Rich List</keyword> after having slipped 489 places.</li><li>The dip in his wealth comes at a time when he is desperately trying to launch <keyword id="9448306" type="UNKNOWN" weightage="20" keywordseo="Coronil">Coronil</keyword>, a medicine he claims is a cure for COVID-19 — a claim, which many dispute. </li></ul>Archarya Balkrishna, the chairman and CEO of Patanjali as well as the right-hand man to yoga guru <keyword id="6355107" type="UNKNOWN" weightage="20" keywordseo="Baba-Ramdev">Baba Ramdev</keyword>, took a massive hit to his wealth during the pandemic. <div type="image" title="5746a6c1b0aa6d17dd0b8657c3e31a3c_edited" msid="81294979" hostid="261" caption="&amp;lt;p&amp;gt;Acharya Balkrishna doing yoga with Baba Ramdev on Yoga Day in 2018 with two lakh people to create a world record for the largest amount of people performing yoga in one place&amp;lt;/p&amp;gt;"></div> According to Hurun’s Rich List 2021, Balkrishna’s estimated net worth dipped by 32% — more than any other Indian billionaire on the list this year in percentage terms. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Balkrishna’s estimated net worth in 2020 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Balkrishna’s estimated net worth in 2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5.3 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$3.6 billion </td></tr></tbody></table> <div type="Article" hostid="261" msid="81288884" title="Meet Jay Chaudhry, the man who studied under a tree in Himachal to become one of the world’s top billionaires today" mstype="2" mssubtype="0"></div> Balkrishna has often stated that the underlying vision for Patanjali is to replace all foreign imports with ‘swadeshi’ (locally made) products. It is one of the reasons why the massive FMCG company has its fingers dipped in nearly every business from food to clothing to power to private security. It even has projects going in the <a href="https://theprint.in/tech/how-ramdevs-patanjali-ayurved-made-a-secret-tech-entry-with-its-own-it-start-up/369203/">cloud services and IT solutions space.</a> <div type="image" title="balkrishna2_edited" msid="81295070" hostid="261" caption="&amp;lt;p&amp;gt;Acharya Balkrishna announcing the availability of Patanjali products across major online portals on 16 January 2018&amp;lt;/p&amp;gt;"></div> But luck was not on Patanjali’s side when the company decided to launch Coronil, its self-proclaimed cure for COVID-19. The claim has been disputed by many in the medical community including the World Health Organisation (WHO) and the Indian Medical Association (IMA). The state of Maharashtra has banned the sale of Coronil until it receives certification from the Ayush Ministry, which looks after all things ayurved, naturopathy, homeopathy, unani, siddha and yoga. For Balkrishna, this is not the first time that he has been caught on the wrong side of things. Balkrishna’s multi-billion dollar empire is not without its controversies Back in 2011, the Central Bureau of Investigation (CBI) filed a case of forgery and cheating against Balkrishna. <a href="https://www.businessinsider.in/small-business/people/fake-degrees-and-passports-here-is-the-real-story-of-acharya-balakrishna-ramdevs-close-aide-and-patanjali-ceo/slidelist/54365692.cms">According to the CBI</a>, the degree that Balkrishna got from the Sampurnanand Sanskrit Vishwavidyalaya in Varanasi was fake. And, it was on the basis of this fake degree that Balkrishna had procured his passport. The administration of the university also <a href="https://www.business-standard.com/article/beyond-business/the-rise-and-fall-of-balkrishna-111073000065_1.html">claimed</a> that they had no record of ever giving Balkrishna a degree. However, the case was closed two years later due to lack of evidence. In 2012, the Enforcement Directorate (ED) also filed a case against Balkrishna over money laundering charges. These were dropped after the National Democratic Alliance (NDA) came into power in 2014. <div type="image" title="6738550d3499f71f5dbe014dfcd955bd_edited" msid="81295019" hostid="261" caption="&amp;lt;p&amp;gt;Acharya Balkrishna (L), Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat (C), and Baba Ramdev (R) in conversation during an RSS program in Haridwar in 2014&amp;lt;/p&amp;gt;"></div> Balkrishna holds 94% stake in Patanjali but he does not take home a salary, according to the <a href="https://economictimes.indiatimes.com/news/company/corporate-trends/how-acharya-balkrishna-built-a-multi-crore-company/built-for-success/slideshow/60853399.cms">Economic Times</a>. He claims to work 15 hours a day, regardless of whether it is a Sunday or any other holiday. According to financial data accessed by business intelligence firm <a href="https://www.business-standard.com/article/companies/patanjali-ayurved-s-revenue-and-profit-rise-but-still-far-from-glory-days-120111301248_1.html">Tofler</a>, Patanjali reported a net profit of ₹423 crore for FY20. But, even with that positive growth, Patanjali is far from its glory days of yore where its revenue used to double year-on-year. The company has been facing issues since the goods and services tax (GST) was introduced in 2017, disrupting its operations. Patanjali also <a href="https://www.livemint.com/companies/news/patanjali-ayurved-completes-acquisition-of-bankrupt-ruchi-soya-for-rs-4-350-crore-11576684912487.html">acquired Ruchi Soya in 2019</a>, which placed further burden on its financials. SEE ALSO: <a href="https://www.businessinsider.in/thelife/personalities/news/ritesh-agarwal-kishore-biyani-and-acharya-balkrishna-net-worth-went-down-in-year-2020-as-per-hurun-list/slidelist/81293374.cms">OYO’s Ritesh Agarwal and Future Group’s Kishore Biyani did not make the cut this year to be among India’s richest billionaires</a> <a href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-naveen-jindal-anand-mahindra-and-kumar-mangalam-birla-increased-their-net-worth-in-2020/slidelist/81290572.cms">Gautam Adani, Naveen Jindal, Anand Mahindra and Kumar Mangalam Birla increased their net worth despite COVID-19 wreaking havoc</a> <a href="https://www.businessinsider.in/tech/news/top-10-tech-billionaires-in-india-as-per-hurun-rich-list-2021/slidelist/81287575.cms">Top 10 tech billionaires in India — Shiv Nadar saw his net worth increase by $10 billion</a>

Patanjali’s Acharya Balkrishna is the biggest loser on Hurun’s Rich List of Indian billionaires

<div class="KonaFilter image-container display-table"><div><div class="image on-image">ReutersSaudi Crown Prince Mohammed bin Salman and SoftBank CEO Masayoshi Son.</div></div></div><ul class="summary-list"><li>Tech startups in the US, Europe, and Asia continue to take cash from SoftBank's $100 billion Vision Fund, despite the fund's deep financial ties to Saudi Arabia.</li><li>It raises uncomfortable questions given Saudi Arabia crown prince Mohammed bin Salman was credibly linked to the brutal murder of dissident and journalist Jamal Khashoggi in October 2018.</li><li>Despite talk of a "reckoning" among tech startups about taking Saudi-linked money, startups have continued to raise hundreds of millions of dollars from the Vision Fund after the murder.</li><li>Cesar Carvalho, the founder of Vision Fund-backed startup Gympass, said accepting cash from SoftBank meant the ability to do business with other companies such as Uber and WeWork.</li><li>He added that SoftBank firms are "changing people's lives for the better."</li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary" target="_blank" rel="noopener">Click here for more BI Prime stories</a>. </li></ul>It has been eight months since the brutal murder of the Saudi Arabian dissident journalist, Jamal Khashoggi, in Turkey.A <a href="https://www.businessinsider.com/audio-khashoggi-drugged-saudi-agents-suffocated-plastic-bag-un-2019-6?r=US&amp;IR=T">UN report released</a> on Wednesday crystallizes what intelligence officers and Turkish authorities have believed for months - that Saudi Arabia's crown prince and ruler, Mohammed bin Salman, is directly connected to the killing. Khashoggi was a direct critic of bin Salman and some of his policies.After the murder in Turkey last October, <a href="https://www.wired.com/story/saudi-arabia-tech-ethical-crisis/">Wired</a> and <a href="https://www.washingtonpost.com/technology/2018/10/23/silicon-valley-struggles-voice-its-concerns-over-khashoggi-killing-amid-vast-saudi-money-influence/?utm_term=.235d30b21de4">The Washington Post</a> wrote that the murder had triggered a "reckoning" in Silicon Valley and the wider tech industry, which is awash with cash from SoftBank's $100 billion Vision Fund. Saudia Arabia's Public Investment Fund ploughed $45 billion into the investment vehicle, making it one of the fund's biggest backers.In November, <a href="https://webcast.softbank.jp/en/detail/video/ref:20181105_01_en">SoftBank's CEO Masayoshi Son denounced</a> the "horrific and deeply regrettable act," condemning the murder as an "act against humanity, journalism, and free speech." He added that SoftBank had raised its concerns with Saudia Arabian officials but would not shirk its financial commitments to the country. He added that his firm was helping diversify its economy and modernise its society.The thinking was that tech startups could take a moral stand. Lofty ambitions to improve the world are at odds with accepting money from an organization with such close ties to a murderous regime. But eight months on, it isn't clear how much of a reckoning there has really been.A number of <a href="https://avc.com/2018/10/who-are-my-investors/">US venture capitalists spoke out</a> at the time. And it is possible the Vision Fund quietly lost out on deals due to founder queasiness. If this is the case, it hasn't been publicly discussed. And there are still plenty of startups willing to take SoftBank's cash.Vision Fund investments announced after Khashoggi's murder include <a href="https://uk.reuters.com/article/us-tech-getyourguide/softbank-leads-funding-round-for-berlin-travel-startup-getyourguide-idUKKCN1SM1HY">UK banking startup Oak North</a>, <a href="https://www.cnbc.com/2019/02/21/doordash-raises-400-million-at-7point1-billion-valuation.html">US delivery firm DoorDash</a>, <a href="https://www.wsj.com/articles/collective-health-raises-205-million-in-softbank-led-funding-round-11560772800">health firm Collective Health</a>, <a href="https://uk.reuters.com/article/us-tech-getyourguide/softbank-leads-funding-round-for-berlin-travel-startup-getyourguide-idUKKCN1SM1HY">Germany's GetYourGuide</a>, <a href="https://www.theverge.com/2019/4/18/18507049/uber-atg-self-driving-autonomous-car-investment-softbank-toyota-denso">Uber</a>, and <a href="https://asia.nikkei.com/Spotlight/Sharing-Economy/Grab-receives-1.46-billion-from-SoftBank-Vision-Fund">Asian ride-hailing service Grab</a>. In each case, these startups raised hundreds of millions or even billions of dollars in a single round.<h2>Money from SoftBank means dinners and business with WeWork and Uber</h2><div class="KonaFilter image-container display-table"><div><div class="image on-image">GettyAdam Neumann, CEO of WeWork.</div></div></div>One of the most recent companies to join the Vision Fund portfolio is Gympass, which partners with workplaces and gyms to get employees working out for the first time. Earlier this month, the firm raised $300 million in a round led by the Vision Fund, <a href="https://www.bloomberg.com/news/articles/2019-06-12/softbank-leads-300-million-investment-in-brazil-s-gympass" target="_blank" rel="noopener">reportedly boosting its value to more than $1 billion</a>.Read more: <a href="https://www.businessinsider.com/gympass-raises-300-million-from-softbank-vision-fund-office-gym-2019-6?r=US&amp;IR=T">Gympass raises $300 million from SoftBank's Vision Fund and other backers to get office workers into the gym</a>Business Insider raised Khashoggi's murder with Gympass CEO Cesar Carvalho during a wider interview and asked whether accepting SoftBank's money had given him any pause.He said: "SoftBank is this worldwide organisation, it is investing in a ton of businesses that are changing people's lives for the better and increasing productivity on multiple fronts. WeWork improves corporate cultures. I have confidence that SoftBank was the right partner for us. I was super comfortable to move forward."Carvalho then echoed something other SoftBank startups have told us: that being in a portfolio with category-leading companies like WeWork and Uber is too valuable an opportunity to throw away.For Gympass, that had immediate and tangible benefits. Carvalho said Gympass' round was over-subscribed, meaning the startup had its pick of who to accept as an investor.As a condition of accepting funding from SoftBank, Carvalho asked the Vision Fund to facilitate business ties with its other portfolio companies. As a result, Gympass counts both Uber and WeWork among its customers, giving it instant access to millions of employees, drivers, and shared office members and, presumably, a revenue boost."It happened simultaneously," Carvalho said. "We already asked [SoftBank] to help us during the process to prove it was a valuable thing. We had done partnerships with several companies in the portfolio and the idea now is to take that to every single market that we are in."In the UK, we have WeWork and two other portfolio companies. We have one in France, we're starting one in Latin America, and another in the US. It's access to that ecosystem that will move the needle for us more than the capital."The other pull is SoftBank's ties to Asia. "It's a key market when we think about the future for us," said Carvalho. "We had many other offers on the table, but we made the decision to go with them."<h2>Other startups have talked about the value of the SoftBank network</h2>Gympass isn't alone. Others have cited the cross-portfolio links as a benefit of taking SoftBank cash.<div class="KonaFilter image-container display-table"><div><div class="image on-image">OyoOyo founder Ritesh Agarwal.</div></div></div>In an interview in September 2018, Oyo founder <a href="https://www.businessinsider.com/ritesh-agarwal-interview-with-founder-of-peter-thiel-backed-oyo-2018-9?r=US&amp;IR=T">Ritesh Agarwal told Business Insider</a>: "It's about working with us, and the broader family of the Vision Fund, which has top companies in every segment worldwide, to help us gain knowledge, and how to share our proprietary knowledge... that's the group you become part of."Last year, CNBC reported that SoftBank's CEO and founder, Masayoshi Son, <a href="https://www.cnbc.com/2018/08/01/masayoshi-son-vision-fund-family-synergy.html">holds regular dinners with the portfolio firms</a> and that the founders treat each other like "family."Ali Diab, CEO of Collective Health, also accepted financing from the Vision Fund this year, <a href="https://www.wsj.com/articles/collective-health-raises-205-million-in-softbank-led-funding-round-11560772800">telling the Wall Street Journal</a>: "The Vision Fund is the pre-eminent global growth fund in the world that is known for backing category leaders. Of course, we are going to work with them."WeWork and Uber have come under greater scrutiny over their SoftBank links due to the billions they have raised. WeWork, additionally, bills itself as a moral company that <a href="https://www.theguardian.com/environment/2018/jul/13/wework-meat-events-expense-ban">doesn't allow employees to eat meat</a> and pushes the idea of "community."Asked about how he could square the SoftBank connection with his firm's ethics, CEO Adam Neumann said only SoftBank's first investment in 2016 came from the Saudi-linked Vision Fund, prior to Khashoggi's death. The rest came from SoftBank itself.<a href="https://www.businessinsider.com/wework-ceo-adam-neumann-business-model-softbank-ipo-risks-2019-5?r=US&amp;IR=T">This is what he told Business Insider in May</a>:"I think the world has a global problem of extremists, together with a huge shift in what different countries can allow their citizens to do or not. I think the only way we're going to solve it is if we come together and agree on a certain level of moral standards, that there are a few things and behaviors we don't accept no matter what."If that means we can't get money because of it, then I agree with you. But if we don't find a way to come together and see the best in each other and find ways to collaborate even if it's hard in the beginning, then I think things will only get worse."SoftBank declined to comment. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/google-stadia-pricing-games-release-date-2019-6">Google finally revealed Stadia pricing, games, and release date</a></h3> <div> </div> </div>

The founder of a $1 billion startup reveals why he took SoftBank's cash after the murder of Jamal Khashoggi

<ul><li><a href="https://www.businessinsider.in/trendsfestival" data-type="tilCustomLink">Global Trends Festival</a> is one of the world's most prestigious events which will be live from Oct 19-23.</li><li>While nobel laureates, some of the biggest political and corporate icons will provide thought leadership, it's a great platform to network with CXOs from around the world.</li><li><a href="https://www.businessinsider.in/trendsfestival" data-type="tilCustomLink">Global Trends Festival 2020</a> is presented by <a href="https://www.businessinsider.in/trendsfestival" data-type="tilCustomLink"></a><a href="https://aws.amazon.com/" data-type="tilCustomLink">AWS</a>.</li><li>Get your tickets now from <a href="https://in.bookmyshow.com/events/business-insider-global-trends-festival/ET00137578" data-type="tilCustomLink">BookMyShow</a>.</li></ul> The only thing we can be sure of in the future is crises - claims economist Nassim <keyword id="1113968" type="PERSON" weightage="20" keywordseo="Nicholas-Taleb">Nicholas Taleb</keyword>. In his opinion, the world has no way of becoming immune to everything, but the turbulence can become our strength. <ul><li>A “Black Swan” cannot be predicted, because it is not possible to “manage risk” fully. </li><li>The American market theorist, investor and philosopher explains how to benefit from the Black Swans.</li></ul>Nassim Nicholas Taleb is an American economist, philosopher and trader of Lebanese origin. In his academic work, he focuses on issues connected with probability, randomness and uncertainty. He is a professor at the University of New York and author of bestsellers: “The Black Swan. The Impact of Highly Improbable", and “Antifragile. Things That Gain From Disorder". The Sunday Times has chosen “The Black Swan” as one of the 12 most important books published after World War II. Living with the “Black Swan” "What I call the Black Swan (written in capital letters) is an event with the following three characteristics. Firstly, it is unusual because it goes beyond the domain of our usual expectations, as no element of the past clearly indicates its possible occurrence. Secondly, it has a drastic impact on reality (as opposed to a bird with an unusual plumage). Thirdly, despite the lack of typicality of this event, our nature forces us to seek a justification for its occurrence after the fact in order to make it explainable and predictable," writes Nassim Nicholas Taleb in his book. According to the economist, societies are not able to react well to the Black Swans because they focus too much on the past and look for the error they have made. However, it is only after the fact that we realise that such events could have been foreseen. Taleb points out that the crux of the matter is that a “Black Swan” cannot be predicted, because it is not possible to “manage risk” fully. In his opinion, we should realise that they do exist, rather than playing soothsayers. The author of the bestseller indicates that any “risk management” is wrong, because it assumes certain models, certain averages, and it is wrong to think that tomorrow will be the same as today. So what should we do? Taleb indicates that once in a while we will have to deal with something that is going to turn the life of our society upside down. We can only try to do our best every day and be reasonably resilient to this type of tragedy. If a Black Swan comes, this preparation will allow us to act much more effectively. "There are many possibilities, it is enough to focus on the anti-knowledge, which is what we do not know. For example, we can learn to benefit from the Black Swans (with their positive effects) by maximising our exposure to such events. In fact, in some areas - such as scientific discoveries and venture capital investments - what is unknown brings disproportionately higher returns, because in the case of rare events, we usually have little to lose and much to gain,” writes Nassim Nicholas Taleb. He also warns against drawing conclusions from the past too hastily and relying on historical data to predict the future. The guest of the <keyword id="9732021" type="UNKNOWN" weightage="20" keywordseo="business-insider-global-trends-festival">Business Insider Global Trends Festival</keyword> writes that if we are not able to “calculate” the risk, we often disregard it altogether, relying on already known models that give us a sense of certainty. "Antifragility" Another well-known publication by Nassim Taleb is “Antifragile. Things That Gain From Disorder". The author argues that some things are served well by shocks because they develop and flourish under the influence of changeability and stress. He cites in his book a model example of exercise in a gym. Muscles are subjected to effort and stress, but the effect can be impressive and beneficial to health. Taleb transfers this example to organisations and companies. When a company avoids stress, its "muscles" become weaker and weaker, and this may be the first nail in the coffin in a constantly changing environment. In his book Nassim Taleb distinguishes between two types of stress: negative and positive. The positive is the one that is often repetitive, but manageable. It is the one that creates new opportunities. The negative is the one that causes the boat to tip over and the company to come out weakened. Here, in turn, we come to the concept of antifragility, i.e. continuous testing, building resilience and constant change. Taleb writes that it is impossible not to make a lot of mistakes, but these should be used to draw conclusions and build “immunity”. Everything, however, depends largely on the mentality, because it is not in human nature to go beyond the comfort zone and to be exposed to inconveniences. SEE ALSO: <a href="https://www.businessinsider.in/trendsfestival" data-type="tilCustomLink"></a><a href="https://www.businessinsider.in/business/news/watch-ubers-apac-head-pradeep-parameswaran-open-up-about-sustainable-mobility-for-all-at-the-global-trends-festival-2020/articleshow/78493912.cms" data-type="tilCustomLink">Watch Uber’s APAC head Pradeep Parameswaran open up about sustainable mobility for all at the Global Trends Festival 2020</a> <a href="https://www.businessinsider.in/trendsfestival" data-type="tilCustomLink"></a><a href="https://www.businessinsider.in/international/news/sebastian-thrun-to-speak-at-the-business-insider-global-trends-festival-2020/articleshow/78432049.cms" data-type="tilCustomLink">Sebastian Thrun to speak at the Business Insider Global Trends Festival 2020</a> <a href="https://www.businessinsider.in/trendsfestival" data-type="tilCustomLink"></a><a href="https://www.businessinsider.in/business/news/watch-out-for-oyos-billionaire-founder-ritesh-agarwal-talking-tech-at-global-trends-festival-2020/articleshow/78141486.cms" data-type="tilCustomLink">Watch out for OYO’s billionaire founder Ritesh Agarwal talking tech at Global Trends Festival 2020</a> <a href="https://www.businessinsider.in/trendsfestival" data-type="tilCustomLink"></a><a href="https://www.businessinsider.in/business/news/sadhguru-jaggi-vasudev-at-global-trends-festival-2020-simplifying-sustainability/articleshow/78271251.cms" data-type="tilCustomLink">Sadhguru at Global Trends Festival 2020: Simplifying Sustainability</a>

Watch Nassim Nicholas Taleb, a Risk Specialist at the Global Trends Festival 2020

Hello!It's been a dark few weeks, but there's been some light in the past few days, as the <a href="https://www.businessinsider.com/coronavirus-icu-patients-new-york-fell-first-time-cuomo-says-2020-4">number of patients in New York ICUs dropped for the first time since the coronavirus pandemic began</a>, and there was <a href="https://www.businessinsider.com/gilead-remdesivir-clinical-data-in-covid-19-patients-2020-4">some promising data on a potential treatment</a>. As Andrew Dunn reports, more than <a href="https://www.businessinsider.com/gilead-remdesivir-clinical-data-in-covid-19-patients-2020-4">two-thirds of hospitalized COVID-19 patients improved in condition after receiving remdesivir</a>, an experimental antiviral treatment from Gilead Sciences. More tests are needed, as the study had no control group, but the lead author called the observations "hopeful." You can read Andrew's story on remdesivir and 14 other leading treatments that are now being tested against COVID-19 here. <h3><a href="https://www.businessinsider.com/list-coronavirus-treatments-tested-in-clinical-trials-2020-4">Here are the 15 leading coronavirus treatments already being tested in COVID-19 patients, and the major trials now underway to see if they work</a></h3>The pandemic is upending medical research across the board, as big pharma mobilizes to find a treatment. GSK for example is betting <a href="https://www.businessinsider.com/glaxosmithkline-vir-collaboration-coronavirus-research-vaccines-2020-4">$250 million on buzzy biotech Vir as the two team up to hunt for coronavirus treatments and vaccines.</a> In related news, Blake Dodge reported this week that Alphabet's life-sciences firm Verily <a href="https://www.businessinsider.com/verily-connect-patients-to-coronavirus-trials-project-baseline-2020-4">may use its giant patient registry to help sign people up to test coronavirus treatments.</a>And Blake separately reported that tests that can tell if you're immune to the coronavirus are on the way. She breaks down <a href="https://www.businessinsider.com/companies-making-coronavirus-immunity-tests-serology-blood-2020-4">the companies racing to bring them to the US healthcare system here</a>. The flipside here, as Andrew and Blake report, is that dozens of biotechs are putting clinical trials on hold as the search for a coronavirus vaccine <a href="https://www.businessinsider.com/coronavirus-is-upending-clinical-trials-for-other-diseases-2020-3">makes it harder to find cures for cancer, heart disease, and neurological disorders</a>. (For more on how Andrew is covering the high-stakes race for a coronavirus vaccine, <a href="https://www.businessinsider.com/qa-with-andrew-dunn-on-coronavirus-2020-4">he talked to deputy executive editor Olivia Oran about his reporting.</a>)Meanwhile, Apple and Google on Friday announced they are building a system to track COVID-19 cases and alert people if they've been in contact with someone with the virus. But as Rob Price reported, the <a href="https://www.businessinsider.com/apple-google-contact-tracing-system-let-down-us-failure-testing-2020-4">plan is let down by America's testing failures</a>.<h2>Startups to watch</h2>From Melia Russell and Paayal Zaveri:The coronavirus outbreak has changed not only where people work from, but how they work and what tools they use.Already, apps like Zoom and Slack have seen huge increases in usage in the past few weeks, as users grab onto ways to stay connected in their work and personal lives while social distancing.The urgent need for better work tools could catapult some enterprise startups into the pantheon of unicorn startups, as their users multiply and venture capital investors jump to fund them.They asked VCs to tell them about one startup in their portfolio, and one where they have no financial interest, and came up with a list of 30 startups to watch. You can read more here. <h3><a href="https://www.businessinsider.com/future-of-work-startups-success-year-venture-capital-2020-4">30 startups creating the future of work that will prosper in 2020, according to VCs</a></h3>Elsewhere in startup news:<ul><li><a href="https://www.businessinsider.com/rigup-oil-andreessen-horowitz-data-breach-layoffs-2020-4">Austin unicorn startup RigUp went from hiring "at a rapid pace" to cutting 25% of staff in a matter of weeks. Now a data breach is adding to its woes.</a></li><li><a href="https://www.businessinsider.com/5-billion-restaurant-software-startup-toast-cuts-hundreds-2020-4">$5 billion software startup Toast just slashed its workforce by 50% despite a recent $400 million funding round, as coronavirus has wiped out its main source of customers.</a></li><li><a href="https://www.businessinsider.com/software-startup-lever-employees-layoffs-2020-4">Employees from Lever, the hot recruiting-software startup run by an ex-Googler, say the company just cut about 40% of its workforce as hiring dries up amid the sharp economic downturn.</a></li><li><a href="https://www.businessinsider.com/these-vc-firms-portfolio-companies-layoffs-nea-founders-fund-andreessen-2020-4">Silicon Valley startups are being forced to cut costs or die in the worst financial crisis in a generation. Here are the investors whose companies are feeling it the worst.</a></li><li><a href="https://www.businessinsider.com/consultants-who-focus-on-distressed-startups-say-theyre-in-demand-2020-4">Consultants who try to help VCs salvage struggling startups say the coronavirus crisis has them 'on more conference calls than we probably ever have been."</a> </li><li><a href="https://www.businessinsider.com/sba-made-easier-for-startups-to-qualify-for-coronavirus-loans-2020-4">Silicon Valley startups may get to tap into the $350 billion coronavirus small-business loan program after all, thanks to late rule changes by regulators.</a> </li></ul><h2>A real estate meltdown</h2>The week started with the news that <a href="https://www.businessinsider.com/wework-group-sues-softbank-for-failing-to-complete-stock-purchase-2020-4">WeWork board members are suing SoftBank for backing out of its plan to buy $3 billion of shares.</a> Meghan Morris reported that former CEO <a href="https://www.businessinsider.com/wework-group-sues-softbank-for-failing-to-complete-stock-purchase-2020-4">Adam Neumann is still weighing legal options</a>.Meghan and Dan Geiger then revealed that WeWork rival Knotel is <a href="https://www.businessinsider.com/knotel-stops-paying-rent-landlords-commission-fees-to-cushman-cbre-2020-4">scrambling to pay millions in bills</a> that started stacking up before the coronavirus hit, <a href="https://www.businessinsider.com/knotel-stops-paying-rent-landlords-commission-fees-to-cushman-cbre-2020-4">and hasn't paid April rent at some locations</a>. They also got leaked Knotel financials, <a href="https://www.businessinsider.com/knotel-leaked-financials-2019-show-missed-targets-2020-4">which show it struggled to hit sales targets.</a>Elsewhere:<ul><li>Dan reported that <a href="https://www.businessinsider.com/aby-rosen-drops-deals-totaling-600-million-amid-coronavirus-2020-4">real-estate tycoon Aby Rosen is abandoning $600 million worth of acquisitions as the coronavirus puts New York City's multibillion-dollar sales market on ice</a>.</li><li>Melia Russell reported that SoftBank-backed Oyo quietly fired 110 people based on their performance. Some fired workers say it was basically impossible to close sales, and the <a href="https://www.businessinsider.com/oyo-fires-us-employees-for-performance-workers-say-sales-struggle-2020-4">company is only offering severance if they agree to not speak out</a>.</li><li>Alex Nicoll reported that real-estate brokerage Redfin <a href="https://www.businessinsider.com/redfin-furloughs-almost-half-agents-lays-off-7-of-employees-2020-4">is furloughing 41% of agents until September</a>, painting a dire picture for how long the US housing market will take to bounce back.</li><li>Real estate mogul Barbara Corcoran talked to Libertina Brant about about navigating real estate uncertainty. "For somebody like me, <a href="https://www.businessinsider.com/barbara-corcoran-weighs-in-on-when-to-invest-in-the-housing-market-2020-4">it's the perfect time to buy</a>," she said. </li><li>Meghan reported that private-equity giant Blackstone bet big on four huge Las Vegas casinos. Then the coronavirus brought Sin City to a halt, <a href="https://www.businessinsider.com/inside-private-equity-giant-blackstones-las-vegas-casino-investments-2020-4">right as the PE giant was trying to unload one of its multi-billion-dollar jewels</a>.</li><li>Troy Wolverton reported that Airbnb could run out of cash in one year, even with the $1 billion it just raised, <a href="https://www.businessinsider.com/airbnb-could-out-of-cash-in-year-due-to-coronavirus-2020-4">because of how devastating the coronavirus is on its business</a>.</li><li>Alex reported that short-term rental managers are ramping up their amenities to<a href="https://www.businessinsider.com/short-term-rentals-lengthen-stays-for-customers-who-want-isolation-2020-4"> include masks, hand sanitizer, and large cases of wine as city dwellers look for their "destination isolation."</a></li></ul>Below are headlines on some of the stories you might have missed from the past week. Stay safe, everyone.-- Matt<ul><li><a href="https://www.businessinsider.com/wall-streets-top-restructuring-bankers-when-recessions-defaults-hit-2020-3">POWER PLAYERS: Meet 20 Wall Street restructuring bankers who will navigate the defaults and bankruptcies of the coronavirus crisis</a></li><li><a href="https://www.businessinsider.com/stock-picks-to-buy-cheap-prices-coronavirus-investing-morgan-stanley-2020-4">Morgan Stanley handpicks the 18 best US stocks to buy now while they're cheap to enjoy profits for years to come</a></li><li><a href="https://www.businessinsider.com/buy-now-pay-later-affirm-afterpay-klarna-splitit-merchants-spending-2020-4">Buy now, pay later startups are "having a moment" - here's why retailers like Walmart and Target are betting on installment payments to keep consumers spending</a></li><li><a href="https://www.businessinsider.com/gv-backed-orbital-insights-images-from-space-track-oil-storage-2020-4">A startup backed by Goldman Sachs is measuring shadows from space to track the world's oil supply - and it's yielding numbers that no one else has</a></li><li><a href="https://www.businessinsider.com/companies-oracle-could-buy-acquisition-targets-20-billion-2020-4">Oracle is known for making bold M&amp;A moves in a recession and it's sitting on a fresh $20 billion. Here are the 7 companies experts think it could acquire as the coronavirus crisis drives down valuations</a></li><li><a href="https://www.businessinsider.com/teach-yourself-to-code-best-online-coding-boot-camps-programming-2020-4">The 10 best online coding boot camps that you can sign up for right now to land a job at a tech company like Facebook or Intel</a></li><li><a href="https://www.businessinsider.com/the-23-people-shaping-the-tv-advertising-industry-in-2020-2020-4">TV advertising is a mess - meet 23 industry insiders working to fix it</a></li><li><a href="https://www.businessinsider.com/mahattan-ceo-reveals-daily-routine-she-follows-working-from-home-2020-4">How a CEO is running a Manhattan-based brokerage from an apartment she shares with her 2 teenage kids - she swears by this daily routine from 6:30 a.m. to 6 p.m.</a><a href="https://www.businessinsider.com/mahattan-ceo-reveals-daily-routine-she-follows-working-from-home-2020-4"></a></li><li><a href="https://www.businessinsider.com/mckinsey-client-note-coronavirus-pandemic-response-2020-4">McKinsey created a 67-page briefing for executives with tips for responding to the coronavirus pandemic. Here are the 9 most important slides you need to read on managing the crisis.</a></li></ul>

You Searched For "case against oyo" and got 11 results

Dues, death and an investigation — all that went wrong with OYO hotels in the last 6 months

Sanchita Dash

MakeMyTrip and Oyo are in trouble with the CCI, opening up a gray area for business partnerships in India

Sanchita Dash

It's a stormy time for two of India's biggest startup brands

Sanchita Dash

Oyo, Zomato, Amazon, and Flipkart are chasing growth but the very foundation is shaking

Sanchita Dash

Oyo, the former 'jewel' in SoftBank's startup portfolio, quietly fired 110 people based on their performance. Some fired workers say it was basically impossible to close sales, and the company is only offering severance if they agree to not speak out.

Melia Russell

There is a government directive against salary cuts in private companies — but can they be stopped?

Prerna Sindwani

India’s biggest startups are faced with growing resistance from industry bodies

Sanchita Dash

Patanjali’s Acharya Balkrishna is the biggest loser on Hurun’s Rich List of Indian billionaires

Prabhjote Gill

The founder of a $1 billion startup reveals why he took SoftBank's cash after the murder of Jamal Khashoggi

Shona Ghosh

Watch Nassim Nicholas Taleb, a Risk Specialist at the Global Trends Festival 2020

BI India Bureau

The race to find a coronavirus vaccine, startups to watch, and a real estate meltdown

Matt Turner

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