Microsoft Corp has invested $5 million in SoftBank-backed Oyo, according to a regulatory filing, ahead of the Indian hotel chain’s plan to go public.
Oravel Stays Pvt Ltd approved the July 16 issue of equity shares, convertible cumulative preference shares in the amount of rupee equivalent of 5 million to Microsoft. According to a file filed by Oyo at the Registrar of Companies.
A source close to the situation told Reuters last month that Microsoft had been in talks with Oyo for an investment at a valuation of $9 billion.
The hotel aggregator, in which Japanese conglomerate SoftBank owns a 46 percent stake, endured months of layoffs, cost cuts and losses during the Covid-19 pandemic.
However, India is gradually easing its travel restrictions and increasing vaccines. This has led to a rise in tourism attraction visits.
Ritesh, Oyo’s chief executive officer and founder, stated in July that the company would be open to a public offering. However, he did not give a time frame.
India currently is experiencing a flurry of IPOs. In July, food-delivery firm Zomato saw a stellar debut. Other Indian startups that are looking to expand markets include the SoftBank-backed Paytm, which was backed by Berkshire Hathaway Inc, and Ola, a ride-hailing company.
A financial news site reported last week that Oyo has shortlisted JP Morgan and Kotak Mahindra capital for an initial share sale of more than $1.2 million. Oyo didn’t respond to our request for comment.
Reporting by Chandini Mohanappa, Vishwadha Chander (Bengaluru); Editing by Saumyadeb Chkrabarty & Subhranshu Sahu
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Photo credit: Oyo suffered months of cost cutting, layoffs and losses in the Covid-19 pandemic. Oyo rooms
Publiated at Mon, 23 August 2021 11:10 PM +0000