Microsoft’s reported investment lifts Oyo’s valuation to $9b

Details:

• Microsoft will likely acquire a small stake in the India-headquartered startup initially, but the software giant has the option of raising its shareholding later, according to the sources.
• The potential investment comes ahead of Oyo’s plans for an initial public offering and a couple of weeks after the hospitality company secured US$660 million in term loan B funding. 

Dive deeper:

• Oyo’s new funds will go into scaling its technology and gaining market share after experiencing a Covid-driven slump in its business.
• Faced with disruption due to the pandemic, the budget-hotel firm reportedly let go of some of its employees last year. It laid off almost 300 workers in its operations team and a total of 5,000 employees across China, India, and the US.