The deal between Microsoft and Oyo has been finalised. Microsoft has invested $5 million in OYO, which is considered a strategic deal for both companies.
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.
Microsoft And Oyo Have Finalised The Deal!
Earlier the media said that Microsoft was in advanced talks to invest in OYO at a valuation of $9 billion.
According to a TechCrunch report citing sources a few weeks back, a deal may close soon but the “proposed size of the investment is unclear”. Both Microsoft and OYO declined to comment on the reports.
But now the deal between Microsoft and Oyo has been finalised and the US-based tech giant has invested $5 million, At just 0.052% of the valuation, in OYO which is considered a strategic deal for both companies.
According to media sources, the two companies have struck an agreement but haven’t revealed any further information about the details of the transaction.
According to regulatory documents, Oyo has started the Series F2 round and has assigned 5 equity shares and 80 preference shares to Microsoft Corporation at an issue price of $58,490 per share to raise $5 million.
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.
According to insiders familiar with the situation, Oyo may switch to Microsoft’s Azure cloud services platform.
The Microsoft deal “may also involve OYO shifting to use its cloud services,” the report mentioned.
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