Microsoft is in advanced talks to invest in OYO at a valuation of $9 billion, the media reported on Friday. Oyo is one of the most well-known startups in India.
Founded by Agarwal in 2013, OYO is the first Indian startup to be publicly rated by Moody’s and Fitch, and two of the leading international rating agencies.
According to a TechCrunch report citing sources, a deal may close soon but the “proposed size of the investment is unclear”.Both Microsoft and OYO declined to comment on the reports.
Microsoft Is In Advanced Talks To Invest In OYO
OYO previously said that it raised $660 million from global institutional investors as TLB (Term Loan B).
According to a company release, the offering was 1.7 times oversubscribed, and the company got commitments worth about $1 billion from leading institutional investors.
The funds will be used to pay off past debts, strengthen the balance sheet, and for other commercial goals, including investment in product technology, according to the company.
“We are delighted by the response to OYO’s maiden TLB capital raise that was oversubscribed by leading global institutional investors. We are thankful for the trust that they have placed in OYO’s mission of creating value for owners and operators of hotels and homes across the globe,” said Abhishek Gupta, Group Chief Financial Officer, OYO.
Oyo Shifting To Use Microsoft’s Cloud Services
SoftBank Group Corp (9984.T) owns a 46% stake has endured months of layoffs, cost cuts and losses since the COVID-19 pandemic outbreak last year.
The Microsoft deal “may also involve OYO shifting to use its cloud services,” the report mentioned.Â
Comments are closed, but trackbacks and pingbacks are open.