Microsoft invests US$5 million in Oyo backed by SoftBank before expected IPO
Aug 22, 2021 backed, expected, invests, IPO, Microsoft, million, Oyo, SoftBank, US5
According to regulatory documents, before the Indian hotel chain plans to go public, Microsoft has invested US$5 million (approximately Rs 37.15 crore) in Oyo, which is backed by SoftBank.
According to the documents submitted by Oyo to the Registrar of Companies, Oravel Stays Pvt Ltd (Oyo) approved the issuance of equity equivalent to Rs 5 million and convertible cumulative preferred shares to Microsoft through private placement on July 16.
Last month, a source familiar with the matter told Reuters that Microsoft is in in-depth negotiations to invest in Oyo at a valuation of US$9 billion.
The Japanese conglomerate SoftBank's 46%-owned hotel aggregator experienced months of layoffs, cost cuts and losses during the COVID-19 pandemic.
However, with the relaxation of travel restrictions and the increase in vaccinations, travel demand in India is slowly recovering, and the passenger flow of local tourist attractions is increasing.
In early July, Oyo's founder and CEO Ritesh Agarwal stated that the company would consider a potential public offering, but did not provide a timetable.
India is currently witnessing an IPO frenzy. In July, the food delivery company Zomato made its debut. Paytm, backed by Berkshire Hathaway Inc, and Ola, a ride-hailing company also backed by SoftBank, are other Indian startups hoping to enter the market.
Last week, a financial news website reported that Oyo had shortlisted JP Morgan, Kotak Mahindra Capital and Citi, with an initial share offering of more than US$1.2 billion. Oyo did not respond to a request for comment on the report.
(Except for the title, this story has not been edited by NDTV staff and was released from a press release)
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