Microsoft is planning to invest in SoftBank-backed Oyo hotels & homes, funding the hospitality company with $9 billion. Investment bankers are predicting that Oyo is more into adding strategic investors before its initial public offering (IPO). Microsoft’s strategic investment follows the hospitality company’s move to raise $660 million in term loan B (TLB) funding from global institutional investors earlier this month. The funding will be used by Oyo to scale up its technology play & increase its market share. In a series of F1 funding round, HT Media Ventures invested $7.31 million in Oyo. Zomato was the first startup in India to reach a market value in excess of Rs.1 lakh crore on debut. It had raised an amount of Rs.4,196 crore from anchor investors ahead of its IPO. In June last year, Microsoft had opened its fifth venture fund office M12 in Bengaluru in the world. Abhishek Gupta, Oyo’s group chief financial officer, had told that the funds will be utilized for retiring previous debts, strengthening the balance sheet & improving product technology investments. The hospitality sector is seeing signs of recovery after a decrease in the number of cases of Covid-19. Oyo is the first Indian startup that is rated by international rating agency Moody’s & Fitch.
Source: Economic Times