Oyo says SoftBank's Yahoo Japan has exited Japan room rental venture

India's Oyo Hotels and Homes said on Thursday SoftBank-controlled Yahoo Japan has quit its Japanese room rental venture, in the latest setback for the fast-growing, money losing startup.

Oyo, which is also backed by SoftBank Group Corp, said it has bought back the shares in Japanese apartment rental company, Oyo Life, held by internet firm Yahoo Japan, now known as Z Holdings, for an undisclosed amount.

Oyo expanded rapidly in India and abroad by promising to drive up hotel occupancy through its online booking system, but has faced pushback from hoteliers who say they have been blindsided by hidden fees.