The US-based tech giant has invested $5 million in the SoftBank-backed hospitality firm, which is considered a strategic deal for both companies.
The transaction is a part of the Series F2 round of the company and puts OYO’s valuation at $9.6 billion.
The investment came at a time when the hospitality chain plans a potential initial public offering (IPO) soon.
Shares allotment
OYO has allotted five equity shares and 80 preference shares to Microsoft corporation at an issue price of $58,490 per share to raise $5 million.
The sale is obviously small, but it might serve multiple objectives, including allowing key investors to report the same valuation on their books on the basis of this deal.
Microsoft investment in tech companies in India
This is not the first investment for Microsoft in a tech company in India. The company had already invested in e-commerce giant Flipkart and last year it backed news aggregator Dailyhunt and logistics startup FarEye.
Last year, Microsoft brought its venture fund M12 to India, the fifth overseas office for the company after San Francisco, Seattle, London, and Tel Aviv.
M12, which primarily invests in B2B companies, has the vision to back Indian startups in their growth and late stage.
About Company
Led by 27-year-old Ritesh Agarwal, the budget hotel chain closed a $660-million debt financing round in July from global institutional investors with plans to use the capital to reduce a part of its existing debt and bolster its tech capabilities.
The news about the Microsoft-OYO deal surfaced after OYO announced earlier this month that it has raised $660 million from global institutional investors as TLB (Term Loan B).
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