Technology giant Microsoft Corp has invested nearly USD 5 million (nearly Rs37 crore) in Oravel Stays Pvt Ltd (OYO) through the issuance of equity shares and compulsory convertible cumulative preference shares (CCCPS) on a private placement basis by the latter, according to a regulatory filing by the hospitality chain.
According to a regulatory filing by OYO this week, Microsoft Corporation has invested USD5 million (nearly Rs 37 crore) in the company via the issuance of equity shares and compulsory convertible cumulative preference shares. OYO was valued at just USD3 billion in recent quarters by SoftBank, one of its largest investors. Reliable sources had told IANS last month that a deal may close soon once the due regulatory processes are met. The size of the deal could not be ascertained at that time.
The Ritesh Agarwal-run hospitality chain has Airbnb, Chinese ride-hailing giant Didi Chuxing and ride-hailing firm Grab as strategic investors. Founder and CEO Agarwal said in July that the company would consider a potential IPO soon. The news about the Microsoft-OYO deal surfaced after OYO announced earlier this month that it has raised USD660 million from global institutional investors.