Microsoft in talks to invest in hotel chain OYO
Microsoft, which is a tech giant, is in advanced talks to invest in Indian hospitality firm OYO at a valuation of $9 billion. In 2019, OYO was valued at $10 Billion and made it one of India’s largest valued startups.
According to reports, there are rumors that the deal may even close soon. So far companies have not clarified the size of the investment. Although, OYO includes several other hospitality chains such as Airbnb, Didi Chuxing, and Grab as its strategic investors.
It is also believed that after the deal is finalized, the OYO Hotel chain will shift onto Microsoft’s cloud services. The official report also mentioned that this would mark Microsoft’s other strategic investment in Indian startups after DailyHunt, Flipkart, and FarEye.
The deal between OYO and Microsoft will begin with a small stake at first and later will diversify into further portfolios. After OYO will announce their association with Microsoft, its IPO plans will be discussed. Ritesh Agarwal, who is the Founder and CEO of OYO mentioned that this month that the company would consider a potential public offering, but did not provide a timeline.
Continuing further, Abhishek Gupta, who is CFO at OYO, added that they were delighted by the response to OYO’s maiden TLB capital raise that was oversubscribed by leading global institutional investors. They placed OYO’s mission of creating value for owners and operators of hotels and homes across the globe.
OYO has increased its products line and that makes it another hot piece in the entrepreneurial industry. Their product line includes coworking spaces and staycation rooms. OYO sees SoftBank Group as its largest investor with a 46 per cent stake. During COVID-19, they endured layoffs, cost cuts, and losses last year.
OYO is back on the track as the Covid-like restrictions opening up in various parts of the world, including India; the company aggregates bookings for budget hotels around the world.