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Microsoft Corporation Invests $5 Million in OYO at $9.6 Bn Valuation

OYO has allotted equity shares and compulsory convertible cumulative preference shares on a private placement basis.

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Edited By :Tejas Harad

Global tech giant Microsoft Corporation on Friday, 20 August, invested nearly $5 million (about Rs 37 crore) in hotel and hospitality business OYO.

According to a PTI report, OYO has allotted five equity shares and 80 compulsory convertible cumulative preference shares (CCCPSs) on a private placement basis.

On 16 July, an extraordinary general meeting of Oravel Stays Pvt Ltd, which runs the OYO Rooms chain of hotels, approved the issue of the equity shares and Series F2 CCCPSs for "an aggregate consideration amounting to rupee equivalent of USD 4,971,650 to Microsoft Corporation on a private placement basis", as per a Registrar of Companies (RoC) filing by the company.

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Moreover, the company has raised about $4 billion to date from 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.

In July, OYO had announced raising Term Loan B (TLB) funding of $660 million (nearly Rs 4,920 crore) from global institutional investors to be utilised for paring debt and other business investments.

OYO was founded in 2013 by Ritesh Agarwal. The Gurugram-based company has a network of over 100,000 small hotels and home owners spread across 800 cities in eight countries.

(With inputs from PTI.)

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Edited By :Tejas Harad
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