Oravel Stays Pvt. Ltd, which operates budget hospitality chain Oyo, raised nearly $5 million from Microsoft Corp. at a valuation of $9.6 billion.
According to the documents filed by the company with the ministry of corporate affairs, Oyo has sold Series F2 compulsory convertible cumulative preference shares to Microsoft. The development was first reported by Press Trust of India.
In June, Reuters reported that Oyo was set to raise equity capital from Microsoft at a valuation of $9 billion. The fundraise comes soon after Oyo was reported to have hired investment banks for a planned public listing to raise $1.2 billion.
Earlier this year, Oyo raised $660 million in debt from institutional investors, including Fidelity Investments, to settle its debt and to invest in product and technology.
The company, backed by SoftBank Group Corp., Lightspeed Venture Partners and Sequoia Capital, among others, was also in the news earlier this year after a bankruptcy court ordered a corporate insolvency resolution process against its unit, Oyo Hotels and Homes Pvt. Ltd, for a claim amount of ₹16 lakh. The National Company Law Appellate Tribunal allowed the withdrawal of the insolvency case against Oyo last month.
Hindustan Media Ventures Ltd, which is controlled by HT Media Ltd, has invested ₹54 crore in the company in January. HT Media Ltd publishes Mint
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