OYO’s valuation nears $10 billion with Microsoft’s $5 million investment
- As per regulatory filings,
OYOhas allotted 5 equity shares and 80 preference shares to Microsoft.
- The round is said to be a precursor to its upcoming $1.2 billion initial public offering (IPO).
- Last month, OYO raised $660 million in debt to repay its past debt and strengthen product technology.
AdvertisementGlobal tech giant Microsoft has invested $5 million in hotel and hospitality business OYO, reportedly at a valuation of $9.6 billion.
This investment is likely to be part of a larger round that may see more infusion from Microsoft in the near future. As per media reports published in July 2021, Microsoft was looking to make a strategic investment for an undisclosed amount in the Softbank-backed company as a precursor to its upcoming initial public offering (IPO).
According to regulatory filings, OYO has alloted 5 equity shares and 80 preference shares to
The development was first reported by Entrackr. Business Insider has reached out to OYO seeking more information on the development.
OYO was founded in 2013 by
It has raised about $4 billion to date from marquee investors like Fidelity Investments, Airbnb, Citadel and more. In March 2021, the company raised $7 million from Hindustan Media Ventures at a valuation of $9 billion. The deal was a part of OYO’s Series F1 round.
Last month, OYO raised $660 million in debt from undisclosed institutional investors to repay its past debts, strengthen balance sheets and boost product technology.
"OYO is well capitalised and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the COVID-19 pandemic," the company’s chief financial officer Abhishek Gupta had said.
As per media reports, OYO has kickstarted its $1.2 billion IPO process as well. The company has shortlisted investment banks JP Morgan, Kotak Mahindra Capital and Citi for this public issue. The eight-year-old startup is expected to add more bankers as the IPO process matures.
OYO’s IPO is likely to be a mix of primary and secondary shares, giving partial exit to a few of its investors.
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OYO is looking to hire over 300 engineers in the next 6 months to clear ‘path to profitability’
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