Tech major Microsoft is set to invest in hospitality chain Oyo, which will give the startup a valuation of $9 billion, two sources aware of the developments said. This is slightly lower than the $10 bn decacorn mark that the company had reached in 2019, following an investment by founder Ritesh Agarwal himself.
The size of Microsoft’s investment is unclear, though one source said that the company usually invests under $100 million. Oyo is also likely to sign on to Microsoft's cloud platform Azure as part of the deal.
The investment comes as Oyo is seeing an improvement in business, especially in Europe, one source said.
There has also been improvement in India and South Asia for the company, another source said.
Oyo and Microsoft did not comment on CNBC-TV18's queries.
While Oyo was valued at $10 billion in 2019, the company's valuation had fallen drastically during the pandemic period because of the closure of travel, as per two sources.
One source said the company's valuation had climbed back to close to $ 9 billion after raising funding from HT Media Ventures earlier this year.
The company is likely to raise more funding from new investors in the next 6-7 months, another source added.
OYO recently raised debt funding of $660 million from global institutional investors as part of a term loan B funding.