Main points about the multi-million dollar investment

New Delhi: Microsoft, led by Satya Nadella, has invested $ 5 million in Indian hotel chain OYO, backed by Airbnb, bringing its valuation to $ 9 billion, while the hotel chain is planning a possible initial public offering (IPO) soon, according to the IANS report.Also Read – LIVE Afghanistan vs Pakistan Cricket Score T20 2021 World Cup Today’s Match Latest Updates: Afghanistan Go Bat, Both Teams Remain Unchanged

Microsoft OYO Agreement

  • According to an OYO regulatory filing this week, Microsoft Corporation has invested $ 5 million (nearly Rs 37 crore) in the company through the issuance of stock and compulsory cumulative convertible preferred shares (CCCPS), IANS reported. .
  • OYO has been valued at just $ 3 billion in recent quarters by SoftBank, one of its biggest investors, IANS reported.
  • Reliable sources had told IANS last month that a deal could soon be reached once the required regulatory processes were followed. The size of the transaction could not be determined at that time, according to the IANS report.
  • The hotel chain run by Ritesh Agarwal has Airbnb, Chinese ride-sharing giant Didi Chuxing and ride-sharing company Grab as strategic investors, according to the IANS report.
  • Founder and CEO Agarwal said in July that the company would soon consider a potential IPO, according to the IANS report.
  • News of the Microsoft-OYO deal surfaced after OYO announced earlier this month that it had raised $ 660 million from global institutional investors under the name TLB (Term Loan B), according to the IANS report.
  • A statement from the company said the offer was 1.7 times oversubscribed and the company had pledges of nearly $ 1 billion from leading institutional investors, IANS reported.
  • The company said it would use the funds to pay off past debts, strengthen its balance sheet and other business goals, including investing in product technology, he said.
  • OYO is the first Indian startup to be publicly rated by Moody’s and Fitch, two of the major international rating agencies.
  • Microsoft’s deal “could also involve switching OYO to using its cloud services,” according to a TechCrunch report.
  • OYO has aggressively expanded its operations to several markets including Southeast Asia, Europe and the United States in recent years.

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