SoftBank Said to Cut Valuation of IPO-Bound Oyo to $2.7 Billion

SoftBank Group Corp. has slashed the valuation of Oyo Hotels on its books by more than 20% as the once high-flying Indian startup prepares for an initial public offering, people familiar with the matter said.

The Japanese investor, the largest shareholder in the hotel-booking firm, cut its estimated value for Oyo to $2.7 billion in the June quarter from an earlier $3.4 billion after benchmarking it against peers with similar operations, said the people, asking not to be named because the information isn’t public. The lodging firm had reached a valuation of $10 billion in a 2019 funding round.

Oyo, ...