Microsoft Corp. (MSFT.O) invested $5 million in Oyo, backed by SoftBank, before the Indian hotel chain plans to go public, according to a government filing.
On July 16, Oravel Stays Pvt Ltd (Oyo) authorized the issuance of treasury shares and cumulative convertible preference shares with a value equivalent to Rs.
Last month, a source familiar with the matter told Reuters that Microsoft was in advanced talks to invest $9 billion in Oyo.
The hotel aggregator, in which Japanese conglomerate SoftBank (9984.T) owns a 46% stake, has suffered cuts, cuts and losses for months during the COVID-19 pandemic.
But as travel restrictions have been relaxed and vaccinations have increased, demand for travel in India is slowly recovering, with local tourist spots seeing more traffic.
In early July, Oyo founder and CEO Ritesh Agarwal said the company was considering a possible public offering but did not give a timeline.
India is currently experiencing an IPO rage. In July, the star debuted at food delivery company Zomato (ZOMT.NS). Travel-friendly Paytm and Ola, also backed by SoftBank, backed by Berkshire Hathaway Inc (BRKa.N).
A financial news site announced last week that Oyo had chosen Kotak Mahindra Capital, JP Morgan and Citi for more than $1.2 billion in an initial share sale. Oyo has not given any comment to a request on this report yet.