Microsoft is likely to invest in OYO; expects valuation at $9 billion

Microsoft is about to be the reason behind OYO’s rebirth as an influential startup after digesting the losses during the lockdown. In the coming weeks, exact details about investments will be disclosed by both parties.

Lockdown has pushed OYO into the depth of losses. OYO is one of the major start-ups established in 2013 by Agrawal. It has initiated hourly hotels at cheaper rates in the entire world.  Softbank Group Corp owns a 46% stake and has the largest wagers. But, due to covid19. Has encountered losses, cost cuts, months of fluctuations in business. In 2019, $10 billion was the value of OYO. In recent quarters, SoftBank, a major investor slashed the valuation to $3 billion. Oyo has fiercely extended to various markets including Europe, Southeast Asia, and the U.S. “toxic culture,” Weak relations with other owners, haul in governance, are raging as an obstacle in the way of growth.

Agarwal asserted at a digital conference and announced “monthly burn” across all businesses to $4 million to $5 million. Oyo had between $780 million to $800 million in its bank. Strict & Nationwide lockdowns made it difficult for people to book OYO and stay there. Agrawal said, “We built something for 30 years & lost almost 60% in 30 days.


Microsoft is about to invest in OYO. This can facilitate a rebirth for OYO. If the deal between both the companies gets confirmed then, it will be the latest investment done by Microsoft in an Indian Start-up. Microsoft has also invested in Flipkart, Daily hunt, etc. $9 billion is the expected valuation of Investment by Microsoft.

According to reports, OYO will utilize the cloud services of Microsoft. What has forced Microsoft to invest in OYO? The possible reason behind this is the rapid growth of OYO. 80 countries and over 100000 hotel partners have been achieved by OYO.