Microsoft invests INR 37 crore in IPO-bound OYO

New Delhi: Microsoft Corp has invested $5 million (INR 37 crore) in SoftBank-backed OYO, according to a regulatory filing, ahead of the Indian hotel chain`s plan to go public. Oravel Stays Pvt Ltd (OYO) approved on July 16 the issue of equity shares and convertible cumulative preference shares amounting to rupee equivalent of $5 million to Microsoft in a private placement, according to a filing by Oyo with the Registrar of Companies.

Last month, a source familiar with the matter had told Reuters that Microsoft was in advanced talks to invest in OYO at a $9 billion valuation.

The hotel aggregator, in which Japanese conglomerate SoftBank owns a 46% stake, endured months of layoffs, cost cuts and losses during the COVID-19 pandemic.

But with easing travel curbs and increasing vaccinations, travel demand is slowly recovering in India, with local tourism attractions witnessing a higher traffic.

In early July, OYO`s founder and chief executive officer, Ritesh Agarwal, said the firm would consider a potential public offering, but did not provide a timeline.

India is currently witnessing an IPO frenzy. In July, food-delivery firm Zomato saw a stellar debut. Berkshire Hathaway Inc-backed Paytm and ride-hailing firm Ola, which is also backed by SoftBank, are among other Indian startups looking to enter markets. Also Read: OnePlus 9 RT to be launched in October in India: Check features, price and more

Last week, a financial news website reported that OYO had shortlisted JP Morgan, Kotak Mahindra Capital and Citi for a more than $1.2 billion initial share sale. OYO did not respond to a request for comment on the report. Also Read: HDFC Bank online banking services to remain closed from THIS date