Tech giant Microsoft Corp has made an investment of $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 (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, it was reported 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 restrictions 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