Microsoft invests $5 million in OYO at $9.6 billion valuation

In July 2021 it was reported that Microsoft was looking to invest an undisclosed amount of money in the hospitality firm ahead of its initial public offering (IPO).

Software giant Microsoft Cooperations invested $5 million in hospitality chain OYO at a valuation of $9.6 billion.

In July 2021 it was reported that Microsoft was looking to invest an undisclosed amount of money in the hospitality firm ahead of its initial public offering (IPO).

According to Business Insider, OYO has allotted 5 equity shares and 80 preference shares to Microsoft Corporation at an issue price of $58,490 per share as a part of its Series F2 round. This aggregates to $5 million. The approval was given for “an aggregate consideration amounting to rupee equivalent of $4,971,650 to Microsoft Corporation on a private placement basis”, as per an RoC filing by the company.

OYO is aiming to invest more in technology to cash in more revenues for the hotel while ensuring an improved user experience for customers. As part of it, OYO is planning to hire  300 technology professionals including software development, engineering, product managers, designers, data scientists, MoneyControl reported. 

In July, OYO closed a $660 million debt from investors such as Fidelity Investments, Citadel Capital Management, and Varde Partners. The company reported that the offer was oversubscribed almost 1.7 times. 

OYO was founded in 2013 by Ritesh Agarwal, the second youngest self-made billionaire. The firm has over 100,000 small hotels and homeowners across 800 cities. As reported by Business Insider, In March 2021, the company raised $7 million from Hindustan Media Ventures at a valuation of $9 billion as part of a Series F1 round. 

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