Microsoft verifies OYO with strategic investment valued at $ 9 billion
Microsoft would buy a small stake now, but it has the option of increasing ownership later
OYO became the first Indian startup to be rated by international rating agency Moody’s and Fitch before the B term loan fundraising
Microsoft, which has been investing in India through its M12 venture capital fund since 2019, launched its India office in June 2020
U.S. tech giant Microsoft has finalized an undisclosed strategic investment in OYO Hotels & Homes, backed by SoftBank, as the startup considers a possible listing opportunity, according to reports.
OYO, which is backed by investors such as SoftBank Vision Fund, Sequoia Capital, Lightspeed Ventures, airbnb and Hero Enterprise was valued at around $ 9 billion during this round, reported AND.
Microsoft would buy a small stake now, but it has the option of increasing ownership later. The investment comes at a time when the hospitality startup has announced it is increasing a $ 660 million B term loan (TLB) funding from global institutional investors earlier this month. This offer was 1.7 times oversubscribed.
OYO became the first Indian startup to be rated by international rating agency Moody’s and Fitch prior to TLB funding. He also said earlier that his business in India turned positive in terms of EBITDA just before the start of the second wave.
As announced during the TLB cycle, OYO will likely use the funding to step up its tech game and gain more market share at a time when the hospitality industry is still struggling to come out of the downturn caused by the Covid-19 pandemic.
The report also comes at a time when a large number of large Indian startups like Nazara Games, Zomato, Paytm, Nykaa, Ola, CarTrade, MobiKwik, among others, have already opted or are in the process of being listed on the stock exchange. The spectacular opening of the restaurant aggregator Zomato to trade with a valuation of INR 1 Tn has prompted many startups to rethink their IPO timeline.
Microsoft increased its presence and investments in India
Microsoft, which has been investing in India through its M12 venture capital fund since 2019, launched its office in India in June 2020. He said the fund would focus on local and cross-border solutions through B2B software startups in the field of applied artificial intelligence, business applications, infrastructure, security and pioneering technologies. M12, which claims to be a founders-focused fund, was founded in 2016 and has so far invested in 200 companies, including the Noida-based healthcare unicorn Innovaccer, news aggregator Daily hunting and New Delhi-based logistics management startup FarEye. Microsoft has also invested in Indian e-commerce giant Flipkart.
Microsoft reportedly considered a strategic investment in Mukesh Ambani’s Jio Platforms digital platform last year. Microsoft and Reliance had formulated a partnership in August 2019 to offer free Reliance Jio connectivity and Microsoft Azure cloud services to technology startups and small and medium-sized businesses in India who