New Delhi: American tech giant Microsoft set to acquire a strategic stake in the domestic hotel chain Oyo Prior to the proposed Initial Public Offering (IPO). The deal, set to be announced soon, values the SoftBank-backed startup at around $9 billion, sources said. Oyo, which became the world’s second largest hotel chain in 2019 before the pandemic, did not comment on the development. Microsoft also did not respond to an email from TOI.
Budget Hotel Startup, Led by a 27-Year-Old Ritesh AgarwalHowever, earlier this month it closed a $660 million debt financing round from global institutional investors with plans to use the capital to reduce part of its existing debt and enhance its technical capabilities. As with the entire hospitality industry, Oyo’s operations have been hit by travel restrictions related to the pandemic. Agarwal, who counts investors: Sequoia Capital, Lightspeed Ventures and Airbnb as their backers said during the pandemic that the startups have about $1 billion in the bank.
Oyo’s valuation jumped from $850 million in 2019 to $10 billion in 2017, which was downgraded by investors because of the problem of brewing in the overseas and domestic market. Industry experts were also skeptical about the rapid expansion.
Budget Hotel Startup, Led by a 27-Year-Old Ritesh AgarwalHowever, earlier this month it closed a $660 million debt financing round from global institutional investors with plans to use the capital to reduce part of its existing debt and enhance its technical capabilities. As with the entire hospitality industry, Oyo’s operations have been hit by travel restrictions related to the pandemic. Agarwal, who counts investors: Sequoia Capital, Lightspeed Ventures and Airbnb as their backers said during the pandemic that the startups have about $1 billion in the bank.
Oyo’s valuation jumped from $850 million in 2019 to $10 billion in 2017, which was downgraded by investors because of the problem of brewing in the overseas and domestic market. Industry experts were also skeptical about the rapid expansion.
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