OYO Became Rich Before IPO Launch, Microsoft Invested

OYO became rich before IPO launch, this giant IT company invested crores of rupees.

Satya Nadella-run Microsoft has invested $5 million in Airbnb-backed Indian budget hotel chain Oyo, taking its valuation to $9 billion now.

The investment comes at a time when the hospitality chain is planning a possible initial public offering (IPO) soon.

A regulatory filing by OYO this week said Microsoft has made an investment of $5 million (about Rs 37 crore) through equity shares and compulsory convertible cumulative preference shares on a private placement basis.

OYO became rich before IPO launch: OYO was recently valued at just $3 billion by SoftBank, one of its biggest investors.

Reliable sources had told media last month that a deal could be completed soon after the due regulatory process is completed. The value of the deal was not known at that time.

Airbnb, Chinese ride-hailing giant Didi Chuxing and ride-hailing firm Grab are strategic investors in the Ritesh Agarwal-run hospitality chain.

Founder and CEO Agarwal had said in July that the company would soon look at a possible IPO.

News about the deal between OYO and Microsoft comes after OYO announced earlier this month that it had raised $66 million in TMB (Term Loan B) form from global institutional investors.

The proposal has been subscribed 1.7 times and the company has received commitments of nearly $1 billion from major institutional investors, a company statement said.

The company said it will use these funds for other business purposes, including repaying its past debts, strengthening its balance sheet, and investing in product technology.

OYO is the first Indian startup to be publicly rated by Moody’s and Fitch, two leading international rating agencies.

OYO has been expanding its operations in recent years to several markets including Southeast Asia, Europe, and the Americas.

Petrol-Diesel may be cheaper, Crude oil prices come down.

After a steady reduction in diesel prices till Friday, there was no change on Saturday. According to experts, as crude oil is getting cheaper, the oil prices should come down.

But Oil Marketing Companies (OMCs) are still seeing volatility in the market before further cuts. Petrol prices have been stable since July 18.