Strategic investment in Oyo at $9 billion valuations finalized by Microsoft

Microsoft is currently in advanced talks to invest in an Indian budget hotel chain – Oyo. The size of the deal is kept unknown. The Soft Bank-backed hotel start-up is valued at $9 billion.

According to a news report earlier, the proposed deal was said to involve Oyo shifting to use Microsoft’s cloud services.

Oyo raised $660 million in debt funding this month from global institutional investors. This was to use the capital for paying dues and other business investments.

Senior executives at the company mentioned that the start-up is working on a potential public listing without providing a timeline for the IPO — several highly-valued Indian technology start-ups are in the midst of entering the public markets. The food delivery firm Zomato saw a stellar stock market debut last week.

Oyo has expanded beyond India and into markets in the U.S., Europe, and Southeast Asia. Travel experts have shown optimism about recovery as Covid vaccinations ramp up.

Nonetheless, questionable tactics cast doubt upon the health of the Indian start-up, according to reports last year. The coronavirus pandemic worsened the situation and forced the hotel chain to lay off employees to cut costs and losses.

With rising vaccination rates and countries gradually easing restrictions, travel demand is making a slow recovery. Last month, Oyo founder and CEO Ritesh Agarwal mentioned that the company’s daily bookings for the summer season more than doubled in Europe, where the vaccination rate is relatively high.

Led by its business in India, Europe, and Southeast Asia, OYO started recording steady signs of recovery, while sustaining its gross margin to 100% of pre-COVID levels.

According to people in the know, a major part of the funds will be directed towards technology and data analytics. As of now OYO’s valuation reclaimed the $9 billion mark after Hindustan Media Ventures Ltd invested Rs 54 crore or $7.31 million into the company.

OYO Hotels & Homes is a name that has embarked it’s presence across 800 cities in 80 countries, including the US, Europe, UK, India, Middle East, Southeast Asia, as well as Japan.

Also Read:-Ritesh Agarwal Success Story 


Recent Posts

Katchatheevu to Coco Islands, The Story of India’s Giveaways

The Katchatheevu island issue is back in the limelight after PM Modi mentioned it in…

2 months ago

Bengaluru’s Worsening Water Crisis Should be the Wake-Up Call for India and The World

Bengaluru is facing an acute shortage of 500 million litres of water every day, which…

2 months ago

The Aam Admi Party Conundrum: Will Kejriwal Run The Delhi Government From Prison?

Delhi's Chief Minister, Arvind Kejriwal, has been arrested by the Enforcement Directorate (ED) and will…

2 months ago

Planning to vote for Modi This Year? Wait! Give it a Read to Become an Informed Voter First

The Indian growth story has been famously dubbed the 'Amrit Kaal' by leaders and ministers…

2 months ago

Key Takeaways From Kovind Panel’s Report on One Nation One Election

The report highlights a two-step process in conducting nationwide simultaneous elections that needs many constitutional…

2 months ago

KWG Game: A Color Prediction Paradise for Indian Gamers

KWG Game has quickly become a hotspot for color prediction enthusiasts in India, offering a…

2 months ago