New Delhi: Microsoft Corporation, the world's leading company in the IT sector, has invested nearly Rs 37 crore ($5 million) in India's budget hotel chain OYO. OYO revealed about it during regulatory filing this week.
The development has come as OYO is planning to launch its IPO soon and after this investment, the valuation of the company has gone up to about Rs 668 crore ($9 billion).
Microsoft has made these investments through equity shares and compulsory convertible cumulative preference shares (CCCPS). Airbnb, China's Didi Chuxing and Grab are strategic investors in the OYO. The company's founder and CEO Ritesh Agarwal had reported in July that OYO was preparing to bring its IPO soon.
Information provided by OYO says that the general meeting held on July 16 by the company running the Oyo Rooms Hotel Chain, Orwell Stays Pvt. Ltd. approved the release of F2 CCCPS and equity shares of the company to Microsoft Corporation for a total of about Rs 37 crore on the basis of private allocation.
Under the deal, OYO will issue five equity shares worth Rs 10 at an issue price of about Rs 43.45 lakh ($58,490). In addition, 80 CCCPS worth Rs 100 for the F2 series have also been approved for release at a price of about Rs 43.45 lakh ($58,490) per series.