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<keyword id="2808667" type="General" weightage="20" keywordseo="oyo" source="Orion">OYO</keyword>'s parent firm Oravel Stays has refuted all 'allegations' made by <keyword id="2232457" type="General" weightage="20" keywordseo="zostel" source="Orion">Zostel</keyword> Hospitality, which had requested the markets regulator Sebi to reject the draft red herring prospectus filed by OYO for its initial public offering. In a letter to the Securities and Exchange Board of India on October 11, 2021, Zostel had said "the IPO is non-maintainable as Oravel's capital structure is not final" and accordingly "Oravel's filing of the DRHP (Draft Red Herring Prospectus) in the circumstances, is illegal..." The DRHP is replete with material omissions and blatant misstatements, intended to mislead the public to invest in Oravel's shares without an appreciation of the risks involved, it had added. In a letter to Zostel, accessed by PTI, OYO said, "...we deny in toto all the allegations levelled by you against us in the Complaint. The Complaint is replete with patently false statements and self-serving half-truths, and is a deplorable attempt to adversely impact the proposed Offer and coerce the Company into granting Zostel's shareholders an entitlement to shareholding in the company that they failed to obtain in the arbitration proceedings between Zostel, its founders and shareholders and the company and the arbitral award dated March 6, 2021, issued by the sole arbitrator, Justice AM Ahmadi (Retd.)". The company has made adequate disclosures required under the applicable law in the DRHP filed with Sebi. No reasons or grounds, whatsoever, have been made out by you, warranting consideration of rejection of the DRHP or suspension of the proposed offer, it added. "The capital structure of the Company is firm and accurately reflected in the DRHP. As on date, there are no shares due to be issued to Zostel's shareholders as the Award does not direct issuance of the Company's shares to the shareholders of Zostel," the letter said. All outstanding litigation required to be disclosed in accordance with the ICDR Regulations and the materiality policy adopted by the board of directors of the company in relation to outstanding litigation, involving the company, its subsidiaries, its promoters and its directors have been disclosed in the DRHP, it added. Further, this matter has been disclosed in the section "Outstanding Litigation and Material Developments - Litigation involving our Company - Material litigation against our Company" of the DRHP. A risk factor in relation to the matter has also been disclosed in the DRHP, OYO said. "...the DRHP contains adequate disclosures of all pending litigations, in compliance with the disclosure obligations under the ICDR Regulations," it added. The DRHP or the proposed offer do not infringe upon or violate the terms of the Award or any judicial or quasi-judicial pronouncements. Adequate information and disclosures have been provided in the DRHP for the potential investors to make an informed decision in respect of investment in the equity shares and the proposed offer, OYO said. Comments from Zostel Hospitality Pvt Ltd could not be obtained at the time of filing the story. Zostel and OYO are involved in a legal battle over a deal between the two companies in 2015. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/irctc-infosys-interglobe-aviation-and-other-trending-stocks-on-october-29/slidelist/87352424.cms" style="">IRCTC, Infosys, InterGlobe Aviation and other trending stocks on October 29</a> <a href="https://www.businessinsider.in/thelife/news/zerodha-founders-rakesh-jhunjhunwala-zohos-radha-vembu-akshay-kumar-and-more-donate-up-to-50-crore-in-fy21/slidelist/87340238.cms" style="">Zerodha founders, Rakesh Jhunjhunwala, Akshay Kumar and more donate up to ₹50 crore in FY21</a>

OYO writes to SEBI, denying all allegations raised by Zostel

<ul><li>Misrepresentation of facts is a common acquisition faced by <keyword id="2808667" type="General" weightage="20" keywordseo="oyo" source="Orion">OYO</keyword> by both these entities.</li><li><keyword id="974036" type="General" weightage="20" keywordseo="fhrai" source="Orion">FHRAI</keyword> has also accused OYO of indulging in anti-competitive business practices.</li><li><keyword id="2232457" type="General" weightage="20" keywordseo="zostel" source="Orion">Zostel</keyword> and OYO’s altercation arises out of a failed deal five years ago.</li></ul>The Federation of Hotel and Restaurants of India (FHRAI) — which claims to have over 55,000 hotels and 500,000 restaurants under its umbrella — has reached out to the Securities and Exchange Board of India (SEBI), seeking suspension of OYO’s $1.2 billion initial public offering (IPO). This is a second entity to reach out to SEBI with such demand. This is in addition to the<a href="https://www.businessinsider.in/business/startups/news/its-not-just-zostel-oyo-has-20-other-lawsuits-to-fight/articleshow/86959438.cms"> 21 legal battles OYO is fighting</a>. Earlier this month, Zostel had approached the market regulator seeking cancellation of OYO’s IPO. Both these entities have completely different reasons behind this demand, however misrepresentation of facts is a common acquisition faced by OYO by both these entities. OYO claims that they have made adequate disclosures in its DRHP. The company had condemned both Zostel and FHRAI previously for their allegations. FHRAI — in an eight-page-long letter to SEBI — highlighted that OYO is engaged in “unfair, anti-competitive and fraudulent dealings and business practices.” FHRAI’s complaint The industry body also mentioned that they had approached the Competition Commission of India (CCI) as well, highlighting the anti-competitive practices of OYO. The antitrust watchdog had also initiated an investigation into OYO’s business and it is known to be in advanced stages, FHRAI added. Even though OYO has disclosed the implications of CCI’s final judgement on its business in its draft red herring prospectus (DRHP), it has not highlighted that the antitrust watchdog has the power to direct behavioural changes to be undertaken. This may completely upset the anti-competitive business practices engaged by Oravel, the association said. Similarly, OYO has “failed to disclose” the nature and consequences of litigations pending against it and its subsidiaries” that have the potential to disrupt the business, '' FHRAI added. “That apart from the aforesaid non-disclosures/mis-disclosures, it is pertinent to point out that there has been not a single case to our knowledge that where a company being investigated for anti-competitive practices by the Director General of the CCI has been permitted to initiate an IPO by the SEBI. In view of the same, Oravel’s proposed IPO is premature and ought to be rejected/ deferred at this stage while a major investigation by the CCI remains pending,” FHRAI noted in the letter accessed by Business Insider India. OYO had earlier said, "We strongly condemn the ill informed, manufactured and baseless lies and allegations about inadequate disclosures in our DRHP. FHRAI member hotels must demand accuracy and accountability from their office bearers about the falsehoods they are propagating." "FHRAI has assumed that no one will verify the accuracy of their claims by cross checking existing disclosure in the DRHP. OYO has been very transparent in disclosing all material cases and disputes we are facing in absolute adherence with the regulations. Zostel’s demand OYO was in talks for a merger with Zo Rooms, a subsidiary of Zostel Hospitality, back in 2015, but the talks fell through. This eventually led to arbitration between the two companies. A Supreme Court-appointed arbitrator found OYO to be in breach of the agreement, which made Zostel eligible for a 7% stake in the Gurugram-based hostel and hospitality giant. This 7% stake would be worth $672 million, as OYO is now worth $9.6 billion. OYO challenged the award before the Delhi High Court earlier this year. The case is currently ongoing at the Delhi High Court. Zostel had also <a href="https://www.businessinsider.in/business/startups/news/oyo-blames-zo-rooms-for-forum-hunting-after-zostels-latest-plea-to-stop-its-ipo/articleshow/86605631.cms">moved a fresh petition </a>last month to the high court in order to restrain OYO from modifying its shareholding pattern, which would prevent the company from raising any more capital and even halt its IPO. OYO had condemned Zostel’s plea SEBI, saying that the company is attempting to overreach the ongoing Delhi high court proceedings. "After multiple attempts in the courts and arbitration tribunal, Zostel’s communication shows unnecessary and repetitive efforts to create a wrong perception," an OYO spokesperson had told Business Insider. The company has reiterated that the talks between Zo Rooms and OYO were in exploratory discussions and “no definitive agreements” were finalised. It added that the award of the Supreme Court appointed arbitrator did not direct OYO to issue any shareholdings to Zostel. OYO had previously accused Zostel of forum hunting. SEE ALSO <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-lost-subscribers-for-the-first-time-in-10-quarters-but-theres-good-news-for-mukesh-ambani-in-this-too/articleshow/87251614.cms" data-type="tilCustomLink">Reliance Jio lost subscribers for the first time in 10 quarters but there's good news for Mukesh Ambani in this too</a> <a href="https://www.businessinsider.in/stock-market/news/berger-asian-shalimar-and-indigo-paints-share-price-down-from-last-five-days/articleshow/87254637.cms" data-type="tilCustomLink">Paint makers stress over high raw material costs and fewer tinting machines even as festive demand picks up</a> <a href="https://www.businessinsider.in/business/startups/news/loss-making-groww-is-now-the-most-valued-investment-platform-even-though-some-of-its-peers-make-profits/articleshow/87249142.cms" data-type="tilCustomLink">Loss-making Groww is now the most-valued investment platform even though some of its peers make profits</a>

OYO IPO now faces a hurdle from a hotels lobby with 55,000 members, aside from Zostel

<ul><li>OYO has 21 cases registered against the company, subsidiaries, directors and promoters.</li><li>The company has spent nearly ₹1,166 crore as legal and professional fees in the last three financial years.</li><li>It also estimates that any adverse outcome in legal proceedings involving <keyword id="2232457" type="General" weightage="20" keywordseo="zostel" source="Orion">Zostel</keyword>, may adversely impact their business.</li></ul>The extensive list of lawsuits against hotel and hospitality giant OYO is no secret. As the company has grown, so have the cases being filed against it. And the company does not expect this number to go down any sooner. OYO — in its draft red herring prospectus (DRHP) for the $1.2 billion initial public offering (IPO) — had noted that the number of legal disputes and proceedings against the company may continue to increase as the company scales further. It is important to note that OYO has 21 cases registered against it, its subsidiaries, its directors and promoters. This includes the petition filed by Federation of Hotels and Restaurants Association of India (FHRAI) in front of Competition Commission of India (CCI) against MakeMyTrip, Goibibo and OYO for dominating online travel agents (OTA) market. Treebo Hotels has raised similar allegations against the company. As per the DRHP, the company has spent nearly ₹1,166 crore as legal and professional fees in the last three financial years. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></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;">Year </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;">Legal and professional fee </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;">FY2019 </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;">₹226 crore </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;">FY2020 </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;">₹618.6 crore </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;">FY2021 </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;">₹322.9 crore </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: OYO’s DRHP "The number and significance of these claims, disputes, and proceedings have increased as our Company has grown larger, the number of bookings on our platform has increased, our brand awareness has increased and the scope and complexity of our business have expanded, and we expect that the number and significance of such claims, disputes and proceedings will continue to increase," OYO’s DRHP revealed. The filing also noted that there are no outstanding litigation proceedings involving any OYO group companies that “have a material impact on our company”. The battle with Zostel is not a simple one either One of the biggest ongoing legal battles OYO is fighting at the moment is the one with Zostel Hospitality, which has reached out to India’s market regulator Securities and Exchange Board of India (SEBI) to reject OYO’s IPO. The company has reportedly called OYO’s IPO as “illegal”. OYO was in talks for a merger with <keyword id="2825269" type="General" weightage="20" keywordseo="zo-rooms" source="Orion">Zo Rooms</keyword>, a subsidiary of Zostel Hospitality, back in 2015, but the talks fell through. This eventually led to arbitration between the two companies. A Supreme Court-appointed arbitrator had found OYO to be in breach of the agreement, which made Zostel eligible for a 7% stake in OYO’s parent company Oravel Stays. OYO challenged the award before the Delhi High Court earlier this year. The case is currently ongoing at the Delhi High Court. “Any adverse outcome in legal proceedings involving Zostel may materially and adversely affect our business, reputation, prospects, results of operation and financial condition,” OYO says in its DRHP. Last month before OYO filed its DRHP, Zo Rooms<a href="https://www.businessinsider.in/business/startups/news/oyo-blames-zo-rooms-for-forum-hunting-after-zostels-latest-plea-to-stop-its-ipo/articleshow/86605631.cms"> moved a fresh petition </a>to the high court in order to restrain OYO from modifying its shareholding pattern, which would prevent the company from raising any more capital and even halt its IPO. OYO — which earlier accused Zostel of forum hunting — has condemned Zostel’s move to approach SEBI, saying that the company is attempting to overreach the ongoing Delhi high court proceedings. "After multiple attempts in the courts and arbitration tribunal, Zostel’s communication shows unnecessary and repetitive efforts to create a wrong perception," an OYO spokesperson told Business Insider. The company has reiterated that the talks between Zo Rooms and OYO were in exploratory discussions and “no definitive agreements” were finalised. It added that the award of the Supreme Court appointed arbitrator did not direct OYO to issue any shareholdings to Zostel. “Nothing in the award prevents or restrains OYO from going ahead with the same," OYO’s legal counsel said. SEE ALSO <a href="https://www.businessinsider.in/cryptocurrency/news/bitcoin-crosses-57000-for-the-first-time-in-five-months-altcoins-continue-to-struggle/slidelist/86957497.cms" data-type="tilCustomLink">Bitcoin crosses $57,000 for the first time in five months — altcoins continue to struggle</a> <a href="https://www.businessinsider.in/tech/mobile/news/samsung-plans-to-launch-2nm-chipsets-by-2025-could-power-its-2026-flagships/articleshow/86959127.cms" data-type="tilCustomLink">Samsung plans to launch 2nm chipsets by 2025, could power its 2026 flagships</a> <a href="https://www.businessinsider.in/business/corporates/news/cyrus-mistrys-sterling-wilson-was-at-the-right-place-at-the-right-time-for-mukesh-ambanis-green-energy-ambitions/articleshow/86952399.cms" data-type="tilCustomLink">Cyrus Mistry's Sterling &amp; Wilson was at the right place at the right time for Mukesh Ambani's green energy ambitions</a>

It's not just Zostel, OYO has 20 other lawsuits to fight

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 Ministry of Civil Aviation has allowed all <keyword id="6391001" type="General" weightage="20" keywordseo="domestic-flights" source="Orion">domestic flights</keyword> to operate at full capacity from October 18.</li><li>Former aviation secretary previously said that the ministry is looking to remove all caps on domestic flights ahead of the festive season.</li><li>Domestic flights were allowed to operate at 85% capacity until now.</li></ul>The Ministry of Civil Aviation has allowed all domestic flights to operate at full capacity from Monday, October 18, onwards. The development was reported by news agency ANI. This comes a few days after the former aviation secretary Pradeep Kharola, who retired on September 30, said that the ministry is looking to<a href="https://www.businessinsider.in/india/news/some-domestic-flights-tickets-may-get-expensive-soon-as-government-mulls-removal-of-airfare-cap/articleshow/86611240.cms"> remove caps on airfare and capacity</a> on domestic flights ahead of the festive season. The ministry introduced a cap on the capacity of domestic flights last year in May amid the rising Covid-19 cases. Such a cap allowed the flights to follow social distancing and minimise the exposure to coronavirus. On May 25 of 2020, the flights were allowed to resume after a two-month-long halt at one-third capacity, which has been increasing gradually. The Ministry of Civil Aviation, in September, had increased the capacity to 85% of flights. Alongside this, the ministry had also imposed a lower and upper cap of airfare based on the flight duration, which ensured that air tickets were not out of budget for the passengers. The Indian aviation industry has been pushing the Indian government as well as the Ministry of Civil Aviation to do away with these limits for several months now. The industry believes that such caps hamper competitiveness and only benefit low-cost carriers. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/its-not-just-zostel-oyo-has-20-other-lawsuits-to-fight/articleshow/86959438.cms" data-type="tilCustomLink">It's not just Zostel, OYO has 20 other lawsuits to fight</a> <a href="https://www.businessinsider.in/business/startups/news/former-sbi-chair-rajnish-kumar-joins-bharatpe-to-guide-its-transformation-to-a-small-finance-bank/articleshow/86963500.cms" data-type="tilCustomLink">The former boss of India's largest bank joins a soon-to-be small finance bank — here's why</a> <a href="https://www.businessinsider.in/tech/mobile/news/samsung-plans-to-launch-2nm-chipsets-by-2025-could-power-its-2026-flagships/articleshow/86959127.cms">Samsung plans to launch 2nm chipsets by 2025, could power its 2026 flagships</a>

India allows domestic flights to operate at full capacity from Monday

Washington, <keyword id="10305627" type="UNKNOWN" weightage="20" keywordseo="sidney-powell">Sidney Powell</keyword>, the <keyword id="6356325" type="UNKNOWN" weightage="20" keywordseo="lawyer">lawyer</keyword> who spearheaded outgoing US President <keyword id="6354484" type="PERSON" weightage="20" keywordseo="Donald-Trump">Donald Trump</keyword>'s failed attempt to overturn the 2020 presidential election result, has been sued for $1.3 billion by the <keyword id="10569060" type="UNKNOWN" weightage="20" keywordseo="American-Corporation">American corporation</keyword> that makes voting machines. In the defamation suit filed on Friday, the Denver-based Dominion Voting Systems chronicled some 40 of Powell's public statements that spread "wild" and "<keyword id="10569062" type="UNKNOWN" weightage="20" keywordseo="demonstrably-false">demonstrably false</keyword>" allegations, reports Xinhua news agency. The "viral disinformation campaign" that Powell mounted "to financially enrich herself, raise her public profile, and ingratiate herself to Donald Trump", deeply damaged the reputation and resale value of Dominion, the suit said. There are "mountains of direct evidence" disproving Powell's election fraud claims about the company's machines, that have resulted in "Dominion's founder, Dominion's employees, Georgia's governor, and Georgia's secretary of state" being harassed and receiving death threats," the 124-page lawsuit further said. Dominion CEO John Poulos also said in a statement that the lawsuit aimed to clear his company's name through a full airing of the facts about the 2020 election. Powell is best known for her defence of Enron Corp. executives Ken Lay and Tom Skilling, who bilked thousands of investors and employees out of around $60 billion in 2001, the New York Times reported in 2005. Lay left behind "a legacy of shame" characterized by "mismanagement and dishonesty", Bloomberg news said in a repor, and in 2009, Portfolio.com ranked Lay as the third-worst American CEO of all time. Powell, 65, now will be forced to defend her central role in the fantasy story that the 2020 election was stolen from Trump. Ironically, Dominion systems were also used in many counties that voted for Trump, and all of Powell's lawsuits involving the fraud claims have failed in court due to lack of evidence. For weeks, Powell claimed that Dominion was established with communist money in Venezuela to enable ballot-stuffing and other vote manipulation, and that those abilities were harnessed to rig the election for Joe Biden. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/tcs-delivers-yet-another-strong-quarter-with-16-growth-in-profit-as-covid-drives-tech-spending/articleshow/80173561.cms">TCS delivers yet another strong quarter with 16% growth in profit as COVID drives tech spending</a> <a href="https://www.businessinsider.in/retail/news/dmart-the-nearly-two-trillion-dollar-indian-retailer-may-post-strong-earnings-watch-out-for-the-progress-on-e-commerce/articleshow/80172629.cms">DMart, the nearly two trillion dollar Indian retailer, may post strong earnings ⁠— watch out for the progress on e-commerce</a> <a href="https://www.businessinsider.in/business/startups/news/oyo-bags-a-7-4-million-cheque-as-pandemic-forces-ritesh-agarwal-to-reimagine-the-business/articleshow/80170847.cms">OYO bags a $7.4 million cheque as pandemic forces Ritesh Agarwal to reimagine the business</a>

Donald Trump's lawyer sued for 1.3 billion by American Corporation

<ul><li>The <keyword id="6354335" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> is beginning to execute its enforcement framework announced in 2018 that brought non-banking financial companies (NBFC) under tighter scrutiny.</li><li>Under this framework, the central banker has barred <keyword id="4532818" type="General" weightage="20" keywordseo="haribhakti-co-llp" source="Orion">Haribhakti &amp; Co LLP</keyword> from auditing any entities regulated by the bank – this includes banks and NBFCs.</li><li>Earlier, <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> had banned EY member firm <keyword id="1921391" type="General" weightage="20" keywordseo="sr-batliboi-co" source="Orion">SR Batliboi &amp; Co</keyword> for one year for lapses in its statutory audit of specific banks.</li></ul>India’s central bank, the Reserve Bank of India (RBI), banned Haribhakti &amp; Co LLP, an audit firm, from undertaking any audits of banks, non-banking financial companies and other entities regulated by the RBI for a period of two years. “This action has been taken on account of the failure on the part of the audit firm to comply with a specific direction issued by RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company (NBFC),” RBI said in a press release on Tuesday. The ban on Haribhakti &amp; Co LLP is amongst the first few under the RBI’s enforcement action framework for statutory auditors, <a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44357">announced in June 2018</a>, which has provisions to debar audit firms which have “serious” lapses in their audits of banks. The central bank’s release underlines that the auditors in question have not complied with a specific direction under this framework. According to the press release, Haribhakti &amp; Co LLP will not be allowed to audit any entity that is regulated by the RBI. This ban comes into effect from April, 2022 and will be in force for two years. The auditors will be allowed to complete their existing audit assignments in the financial year 2021-22. In this case, RBI has not specified the “systemically-important” NBFC. As of 2019, there were 275 such entities and the list includes the likes of Bajaj Finance and Bajaj Finserv, Shriram Transport Finance, Power Finance Corporation, among others. Some of the companies that have been audited by Haribhakti &amp; Co LLP include Birla Sunlife AMC, Axis Bank, IndusInd Bank and <a href="https://www.businessinsider.in/finance/news/rbi-has-taken-two-srei-companies-out-of-board-control-after-payment-defaults/articleshow/86754390.cms">SREI</a> Infrastructure Finance as well as SREI Equipment Leasing. <div type="Video" msid="86962810" hostid="261" title="The vicious circle behind bad loans. Should banks be revealing the names of the big loan defaulters?" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid"><payload><![CDATA[Banks blame ratings agencies who blame auditors who in turn blame the banks, the vicious circle behind bad loans]]></payload></div> It is worth noting that this is not the first action that RBI has taken against auditors. Earlier, it had banned SR Batliboi &amp; Co., one of the top auditors in the country and a partner of global audit firm Ernst &amp; Young (EY), for lapses in its statutory audit of banks. <a href="https://www.business-standard.com/article/companies/rbi-bars-ey-group-s-batliboi-from-auditing-bank-books-for-one-year-119060301662_1.html">Reports</a> at the time suggested the banks were Yes Bank and Axis Bank, and the lapse was in not correctly identifying the non-performing assets of the banks to the tune of over ₹13,500 crore. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/its-not-just-zostel-oyo-has-20-other-lawsuits-to-fight/articleshow/86959438.cms">It's not just Zostel, OYO has 20 other lawsuits to fight</a> <a href="https://www.businessinsider.in/tech/enterprise/news/infosys-may-beat-tcs-earnings-even-with-lower-deal-wins-in-september-quarter/articleshow/86952606.cms">Infosys may beat TCS earnings even with lower deal wins in September quarter</a> <a href="https://www.businessinsider.in/policy/legal/news/cloud-kitchens-are-restaurants-ice-cream-is-not-food-and-other-important-clarifications-that-will-affect-gst-rates/articleshow/86841614.cms">Cloud kitchens are restaurants, ice cream is not food and other important clarifications that will affect GST rates</a>

RBI has barred one of the country's top auditors from looking at the books of any company regulated by the central bank

It’s never been a better time to be a shopper, given today's buy-anywhere retail environment. It's raining deals at stores, on social media, and inside in the comfort of the couch at your fingertips. Mobile commerce is expected to make up 83% of all e-commerce sales by 2024 and 8% of total retail1. And now shopping is such that points of discovery differ from the actual spot of purchase. A product on a streaming platform like <keyword id="685487" type="General" weightage="100" keywordseo="spotify" source="Orion">Spotify</keyword> catches a shopper's eye who then swings by the store or their preferred e-commerce platform. Catch the big wave in omnichannel surfing With e-commerce sales expected to grow by 27% by the end of 20211, there are more ways to shop and even more places for shoppers to discover that great find. So for an 'omnishopper' who shops across multiple devices and places, more accessibility does not make it easy for brands to target them. These shoppers aren’t just buying what they need, they’re constantly looking for what they want, or didn't know they wanted until they discovered it. This can make it hard for brands to foresee and prepare for their next move. Being spoiled for choice, messaging to this new-age consumer has to feel authentic, tailored, and respectful of their time and sensibilities. If not, they are going to bounce. So brands need to advertise in the right place that people trust. And when they do make a decision, it’s because they sense a personal relationship between themselves and the brand. At Spotify, we’ve worked hard to build this trust with our listeners. Omnishoppers seek out to make a statement. 89.7% of Spotify Free listeners discover brands and products from paid advertising2. A pair of kicks before everyone's wearing them is a thing of pride, much like being the first in their group to discover a new song from a favourite artist. The chase excites them and they know where to find it, just like how 43% of <keyword id="12294703" type="General" weightage="20" keywordseo="gen-z-spotify" source="Orion">Gen Z Spotify</keyword> users said they’ve heard a song on social media, and then searched for it on Spotify3. And that's why our listeners spend their time with us, eager to explore, spending an average of 2.5 hours every day, with multi-device listeners of Spotify Free spending an average of 1.5 hours on Spotify each day4. Another big reason for brands to look at Spotify is what our listeners are planning. After delaying purchases in 2020, 1 in 3 Spotify users is looking at large, big-ticket purchases. Keep in mind that this is a user base that is likely to spend 15% more on what they want than any other cohort. The experience gets more personalized for them as they spend more time listening. So Spotify matches their vibe through different moments of their day, and no other media can match that level of connection. When it’s relevant, the recall is better too as 75% of Spotify listeners say they remember ads more when brands recognize their moment or setting5. Spotify helps brands reach listeners in the right moment, and the numbers speak for themselves - 2.7x higher awareness and 5.3x higher intent than campaigns with basic demographic targeting5. Help shoppers spot the next big thing on Spotify: Your brand Spotify listeners are savvy to online shopping trends. They are the trend-setters. Spotify Free listeners are almost 4.3x more likely to discover brands and products via music streaming than through TV ads and 1.5x more likely than through radio ads2. Offers and benefits can be the turning point to steer through a plethora of options. 59% of Spotify Free users agree that free delivery is the top driver of online purchases for them2. 51% prefer easy returns and 45% pick the lure of discounts and coupons2 It all comes down to targeting the right audience and enabling discovery for the engaged listener in an environment of trust. It’s just this that Spotify has built, that listeners keep coming back to every day, giving brands the perfect vantage point to reach the elusive omnishopper. Get in touch with us at <keyword id="12294701" type="General" weightage="20" keywordseo="spotify-advertising-indiaspotify-com" source="Orion">spotify-advertising-india@spotify.com</keyword> to see how your brand can engage with the right audience - avid shoppers and people seeking some retail therapy. Sources: 1 – <keyword id="256870" type="General" weightage="20" keywordseo="emarketer" source="Orion">eMarketer</keyword>, <keyword id="12294702" type="General" weightage="20" keywordseo="retail-forecast" source="Orion">Retail Forecast</keyword>, IN 2 - GWI, IN, Q1 2021 3 - Spotify Culture Next survey, conducted in April 2021 among 500 respondents 15-40 in India 4- IFPI Digital Music Report 2019 5 - Spotify Nielsen Brand Effect Studies, 2018 Disclaimer: This is a sponsored post in partnership with Spotify SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/its-not-just-zostel-oyo-has-20-other-lawsuits-to-fight/articleshow/86959438.cms">It's not just Zostel, OYO has 20 other lawsuits to fight</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/samsung-plans-to-launch-2nm-chipsets-by-2025-could-power-its-2026-flagships/articleshow/86959127.cms">Samsung plans to launch 2nm chipsets by 2025, could power its 2026 flagships</a>

Here’s why Spotify is your best connection to reach the new ‘omnishopper’

<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div><ul class="summary-list"><li>The venture capital industry still isn't sure what to think of <a href="https://www.businessinsider.com/category/softbank">SoftBank's</a> $100 billion <a href="https://www.businessinsider.com/category/vision-fund">Vision Fund</a>, even as it suffered setbacks on its investments in <a href="https://www.businessinsider.com/category/wework">WeWork</a> and <a href="https://www.businessinsider.com/category/uber">Uber</a>.</li><li>Some in the industry blame the fund for inflating startup values and funding rounds; encouraging founders to focus on growth and ignore costs and losses, no matter how big; and setting off an unhealthy arms race in the venture capital world as firms raise ever larger funds.</li><li>But some think it's unfair to blame SoftBank for some of these trends, noting that funding rounds were getting larger long before the Vision Fund launched.</li><li>And others think the Vision Fund has benefitted the venture and startup industries, allowing founders to dream bigger and enabling companies to develop longer in private without being under the scrutiny of public markets.</li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</li></ul>Venture investors make tough calls every day, giving a thumbs up or thumbs down to an endless parade of startups.But one thing Silicon Valley's investment luminaries can't agree on is what to make of SoftBank, the Japanese tech mega-fund that landed in their midst three years ago.SoftBank's $100 billion Vision Fund, and SoftBank CEO Masayoshi Son, have changed the rules of the game. Thanks to SoftBank's jumbo-sized checks and nose-bleed valuations, tech startups look and act a lot different than just a few years ago. For some Silicon Valley insiders, that's a good thing, with Masa dollars opening the door to fresh opportunities and innovations. Others think SoftBank has distorted the technology market and the startup ecosystem, inflating values, enabling poor financial discipline, and empowering companies with little inherent or sustainable competitive advantage.Now the debate is coming to a head, as two of SoftBank's biggest bets - Uber and WeWork - teeter on shaky ground, and as SoftBank plows ahead with plans to raise a second $100 billion Vision Fund. For tech VCs and founders, it's a proof-point moment that will put the SoftBank model to test, for better or for worse, and help Silicon Valley come to terms with its ultimate impact."SoftBank is like no one else," said Michael Duda, a managing partner at Bullish, a startup accelerator and investment firm that's backed smart fitness startup Peloton and online mattress firm Casper. "Everything they do," he continued, "is going to get a lot more scrutiny because of the size of what they're doing." <h2>SoftBank is warping the competitive landscape</h2>SoftBank is <a href="https://www.cnbc.com/2019/09/03/softbank-more-than-600-million-underwater-on-uber.html">down a reported $600 million on its investment in Uber</a> thanks to its disappointing initial public offering and the subsequent drop in its stock price. WeWork, meanwhile, is struggling to get investors on board with its public offering. In an effort to try to lure them in, it <a href="https://www.ft.com/content/111f8e00-d346-11e9-8367-807ebd53ab77">has reportedly discussed slashing its valuation to as little as $15 billion</a>, or less than a third the valuation SoftBank conferred on it in January when the Vision Fund gave WeWork $2 billion in new funding.Some in and around the venture capital industry think Uber and WeWork's struggles represent SoftBank's comeuppance - and they're glad to see it. It would be a good thing if the setbacks at those companies spurred SoftBank's limited partners in the Vision Fund to scrutinize its investments more closely or forced it to scuttle its <a href="https://www.businessinsider.com/softbank-108-billion-vision-fund-ii-2019-7">planned follow-on Vision Fund</a>, said Greg Bohlen, a cofounder of Union Grove Venture Partners. "They have been an incredibly disruptive force in the venture ecosystem," Bohlen said.Read this: <a href="https://www.businessinsider.com/softbank-will-likely-find-investors-vision-fund-ii-despite-wework-2019-9">WeWork and Uber are giving SoftBank a black eye, but that doesn't mean Vision Fund II is in trouble, experts say</a>Part of SoftBank's detrimental impact involves its role encouraging startups and founders to focus on growth and not concern themselves with costs or the bottom line, Bohlen and others argue. That dynamic is most obvious at WeWork, which has been bleeding billions of dollars in cash amid its worldwide expansion and has <a href="https://www.businessinsider.com/wework-s-1-prospectus-ipo-revenue-cash-flow-2019-8">seen its losses grow</a> about as quickly as its revenue.<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>Founders backed by SoftBank can lose their financial discipline, because they know they have its huge pool of money behind them, said Matt Murphy, a partner at Menlo Ventures. But the Vision Fund's huge investments may also be pressuring founders into growing their companies faster than the startups can sustainably maintain, he said."That's kind of an open question and concern," said Murphy.The vast sums SoftBank is investing in startups - generally in the range of $100 million to several billion dollars - are warping the competitive landscape, Murphy and others in the industry said. Startups are getting a leg up in the market purely because they're swimming in SoftBank's cash - not because they've proven their business models or have some kind of important technological or organizational competitive advantage, said Dan Malven, a managing director at 4490 Ventures.The ability to raise vast sums has become their competitive advantage, he said. Conversely, those vast sums can discourage other investors from putting money into companies that actually have unique technologies or intrinsic competitive advantages, he said.In general, the role SoftBank has played in the startup ecosystem has "not been healthy," Malven said.In some cases, the Vision Fund seems to be trying to prematurely anoint a winner in particular markets, venture sources said. That seemed to be the case in the app-based dog-walking business, Murphy said.His firm invested in Rover in 2014. Last year - four years after Menlo's investment - SoftBank <a href="https://www.businessinsider.com/wag-raises-300-million-from-softbank-hires-hilary-schneider-as-ceo-2018-1">invested $300 million in its competitor, Wag</a>, even though Rover was still the "clear market leader" in the space, Murphy said. It still is, despite SoftBank's investment, he said."They tried to create a winner in Wag," Murphy said. "There are times," he continued, "where they just say, 'We want to be in this market, and we're going to pick the winner and help fuel them with capital to help create that market.'"SoftBank representatives did not return a call seeking comment.<h2>The Vision Fund has spurred an arms race in the venture industry</h2>SoftBank's large investments are also distorting the labor market, Malven said. Companies flush with the firm's funds are able to lure away top engineers and other workers who, in an ideal world, would have gone to work for startups that have more going for them than just SoftBank's cash, he said. If and when the unsustainable startups flounder, those workers will likely leave or be laid off, as has been <a href="https://www.businessinsider.com/uber-layoffs-global-marketing-team-2019-7">happening</a> <a href="https://www.businessinsider.com/uber-fires-435-engineering-and-product-employees-2019-9">lately</a> at Uber.<div class="KonaFilter image-container display-table float_left"><div><div class="image"></div></div></div>"There's just a lot of friction in the talent market that is bad for the overall industry," Malven said.Some think the Vision Fund hasn't just been bad for startups and the tech industry but also for the venture capital business. SoftBank's move to raise such an enormous fund has spurred other investors to scale up as well. In the last two years, <a href="https://www.businessinsider.com/r-success-with-snap-helps-venture-firm-lightspeed-raise-18-billion-for-new-funds-2018-7">Lightspeed Venture Partners</a>, <a href="https://www.businessinsider.com/r-sequoia-capital-plans-8-billion-global-fund-eyes-china-investors-sources-2018-1">Sequoia Capital</a>, and <a href="https://www.businessinsider.com/blackstone-raises-22-billion-fund-its-largest-ever-source-2019-4">Blackstone Group</a>, among others, have all raised their largest-ever funds.All that money flowing into the venture industry has led to an oversupply of capital, particularly among late-stage investors, some venture figures said. The surplus funds have fueled competition among different firms looking to get stakes in hot startups, increasing funding rounds and oversupplying companies with cash, they said. The end result is likely to be wasted capital and poor returns, they said."That up-scaling" of venture funds in response to SoftBank "has just been horrendous," Union Grove's Bohlen said.But not everyone in the venture industry blames SoftBank for the super-sizing of venture funds and the swell in cash flowing into startups. Investors and companies around the world have been sitting on large pools of excess capital around the world, looking for places to invest it, some venture figures said. And venture rounds were getting bigger long before SoftBank set up the Vision Fund, they said.Despite the huge size of the Vision Fund, it's not dominating the venture capital market or determining the overall trends, said Bullish's Duda. It just doesn't account for enough investments to have that role, he said."They might get blamed. I think that's massively unfair," Duda said. He continued: "There would still be high valuations no matter what."<h2>Founders are dreaming bigger</h2>Indeed, even if SoftBank fails to raise money for its planned second Vision Fund, the firehouse of capital into the startup market likely won't abate much, said Jai Das, the president and a managing director of Sapphire Ventures. There are still lots of other well-capitalized venture, private equity, and hedge funds that are pouring money into the sector."There's plenty of capital still floating around even without the Vision Fund," Das said. He continued: "I dont think the entrepreneurs will have a hard time raising money for, really, the good companies, even if Vision Fund is not around."Regardless of how much responsibility they assign to SoftBank for the upscaling of funds and funding rounds, some in the venture industry, including Das, think the Vision Funds has played a positive role in the startup ecosystem. Even some of SoftBank's critics think the fund has benefitted the tech and venture industries in some ways.The big funding rounds that SoftBank has helped pioneer and lead have changed the mindset among entrepreneurs, Das said. It's allowed startup founders to think bigger about their companies and their potential, he said. It's now "normal" for companies whose annualized revenue has grown to only around $100 million to seek to raise $200 million or $250 million in new funding, Das said, which is much bigger than in the past.The Vision Fund has "made entrepreneurs dream big, sometimes foolishly, sometimes not," Das said. Softbank, he continued, has "changed the whole dynamic."<h2>SoftBank has a global focus</h2>The copious amounts of cash flowing into startups from SoftBank and other investors has allowed startups to stay private longer and avoid the intense scrutiny of the public markets. That's been helpful to companies that have needed more than the average amount of capital or time to prove out their business models, Murphy said.<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div>Twenty years ago, the public markets put up with Amazon's losses and gave the company time to develop, noted Phil Libin, cofounder and CEO of the technology incubator All Turtles who was previously an investor with the venture firm General Catalyst. But Amazon was one of the few exceptions, he said.Generally, public market investors are looking for returns on a much shorter time scale than new startups can deliver, Libin said. If SoftBank is willing to take on some of the risk by enabling startups to remain private while they continue to figure things out, that's a good thing, he said."I'm a huge fan of what they're trying do, in theory, and I hope it succeeds," Libin said.Libin also praised SoftBank for having a global outlook, rather than being narrowly focused on investing in San Francisco and Silicon Valley. Among other companies, SoftBank and the Vision Fund have invested in Chinese ride-hailing company <a href="https://www.businessinsider.com/r-softbank-to-move-ride-hailing-stakes-worth-20-billion-to-vision-fund-ft-2018-4">Didi Chuxing</a>, India hotel chain Oyo Rooms, and Brazilian logistics technology company Loggi."There's no reason why you should have to be in Silicon Valley to get access to business capital if you have an idea that could really be world-changing," Libin said.SoftBank's going to make mistakes, said Duda. And because of the size of the Vision Fund and all of the scrutiny of it, those mistakes will be magnified in the press and in the industry, he said. But SoftBank has smart people and Son has a long-term vision. It's anyone's guess how it will all work out for the Vision Fund and for the rest of the industry, he said."In theory, I'm rooting for them," Duda said. "Because if they get involved with our companies, that means the valuation is probably going way up."Got a tip about SoftBank, WeWork, or Uber? Contact this reporter via email at twolverton@businessinsider.com, message him on Twitter <a href="https://twitter.com/troywolv/">@troywolv</a>, or send him a secure message through Signal at 415.515.5594. You can also <a href="https://www.businessinsider.com/how-to-tip-business-insider-securely-guide-signal-securedrop-2017-6"> contact Business Insider securely via SecureDrop</a>.<ul class="read-more-links"><li>Read more about SoftBank investment WeWork's planned IPO:</li><li><a href="https://www.businessinsider.com/wework-3-trillion-addressable-market-grossly-overstated-experts-say-2019-9" data-read-more-link="" data-e2e-name="read-more-link">WeWork says it has a $3 trillion market opportunity and has signed up only 0.2% of its potential customers. Here's why real-estate experts say those numbers don't add up.</a></li><li><a href="https://www.businessinsider.com/wework-most-big-stock-grants-went-to-men-internal-study-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> WeWork gave out 58 stock awards worth at least $1 million each in February, and 94% of them went to men, according to a lawsuit</a></li><li><a href="https://www.businessinsider.com/wework-47-billion-private-valuation-could-imperil-its-ipo-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> Why WeWork's $47 billion private valuation could be a key stumbling block for its IPO - and might even derail it completely</a></li><li><a href="https://www.businessinsider.com/wework-47-billion-and-4-billion-lease-disparity-dangerous-recipe-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> 2 big numbers - $4 billion and $47 billion - sum up WeWork's business model and the risky reason it could collapse in a recession</a></li><li> </li></ul> <a href="https://www.businessinsider.com/intelligence/40-big-tech-predictions-for-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=uber&amp;itm_campaign=40-big-tech-predictions-for-2019-3"></a>

Venture investors still aren't sure what to make of SoftBank's $100 billion Vision Fund. Depending on who you ask, they're either rooting for it, or gleeful that it's struggling with WeWork and Uber.

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Venture investors still aren't sure what to make of SoftBank's $100 billion Vision Fund. Depending on who you ask, they're either rooting for it, or gleeful that it's struggling with WeWork and Uber.

Troy Wolverton

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