Hospitality giant OYO is raising a strategic round of investment from Microsoft, which will push up its valuation to $9 billion, according to sources privy to the development. The magnitude of investment is expected to be disclosed in a couple of weeks. The company already has Didi Chuxing, Grab, and US-based Airbnb as its existing strategic investors.
This fund release comes at a time when the platform is gearing up for its IPO. Recently, the unicorn had announced the closure of $660 Million from Fidelity Investments, Varde Partners, and Citadel Capital Management. The funding will be used to retire its existing debts as well as accelerate its operations. With these developments, the venture is on the crux of becoming profitable.
Microsoft is already investing extensively in the Indian market. In 2020, it opened up its venture fund office M12 in Bengaluru and has since been perusing investment opportunities in B2B businesses, with a keen eye on upcoming technologies like Artificial Intelligence, and vanguard technology. Microsoft has already invested in companies like Flipkart back in 2017 and has also entered into a ten-year partnership with Reliance Industries. Presently, it is in talks with the Telangana government regarding a $2 billion data center.