Microsoft Set To Invest In Indian Hospitality Chain OYO At $9 Billion Valuation: Report
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United States based technology giant Microsoft is in advanced stages of talks to invest in Indian hotel chain Oyo at a valuation of $9 billion, reports
Tech Crunch.
According to the report, a deal is expected to close between both the companies as soon as Friday (30 July). However, the proposed size of the investment is unclear.
The proposed deal is likely to also involve the Ritesh Agarwal-led Oyo shifting to use Microsoftâs cloud services.
The valuation of Oyo was at about $10 billion in 2019 but has been slashed to $3 billion by Softbank, a major investor in the startup, in the recent quarters.
Will Oyo be forced to give 7% equity to Zostel?
The matter goes back to 2015 when Zo Rooms and Ritesh Agarwal-led Oyo started merger talks. Next year, the deal was called off by Oyo. In 2018, Zo approached the Supreme Court which directed to start the arbitration process
Manu Kaushik | March 16, 2021 | Updated 22:56 IST
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Recently, an arbitral tribunal ruled in favour of Zostel Hospitality, a chain of backpackers hostels, in its three-year-old legal battle with SoftBank backed-Oyo Hotels and Homes. Under the deal, Oyo was supposed to acquire Zostel s business. In return, it was expected to give 7 per cent shareholding to Zostel. Zostel claimed that it has transferred its entire business but Oyo refused to transfer shareholding.
Will Oyo have to really give 7% shareholding to Zostel? businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.