SoftBank-backed Oyo nets investment from Microsoft

Oyo, a SoftBank-backed Indian hotel chain, said it has received an undisclosed amount of funding from Microsoft as part of an agreement to co-develop “next-gen” travel and hospitality products and technologies.

Photo credit: Oyo

The equity investment comes ahead of Oyo’s stock market debut – slated for later this month – at a reported valuation of between US$14 billion and US$16 billion.

The new solutions will be geared toward owners of small and medium-sized hotels and home storefronts.

Oyo will also adopt Azure, Microsoft’s cloud computing service, which will help independent hotels and homeowners manage the experience for guests, increase revenue, and run operations.

Currently, the Bengaluru-based firm has over 100,000 partners globally who use its proprietary technology, products, and revenue management capabilities.

Under the deal with Microsoft, Oyo said it will develop “smart room” features such as premium and customized in-room experiences for its guests. The features will include self-performed check-ins, supported by a digital register of arrivals and departures, and know-your-customer services, along with smart locks and virtual assistance that will be managed by an internet-of-things system.

“Our patron app ecosystem provides about an 1.4x to 2.4x lift in revenues for new hotels and homes that join the Oyo network,” said Abhinav Sinha, chief product officer at Oyo Hotels & Homes. “This alliance with Microsoft will accelerate the deployment of our products in the hands of small businesses we work with.”

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In addition to the fresh investment, Oyo will also use the Microsoft 365 suite and switch to GitHub Enterprise for tech development. The hotel chain is also working on several products to simplify the onboarding process for its partner hotels and homestays.

In July, Oyo raised US$660 million in a senior secured syndicated credit facility to retire past debts, strengthen its balance sheet, and for other business purposes, including investments in product technology.