Ahmedabad headquartered Oravel Stays, which owns and operates budget hospitality chain OYO, has raised nearly $5 million (Rs 37 crore according to current exchange rates) from Microsoft Corporation. The company is now valued at $9.6 billion.
According to documents filed by the company with the Ministry of Corporate Affairs, OYO has issued Series F2 Compulsory Convertible Cumulative Preference Shares (CCPS) to the technology company.
The development was first reported by PTI.
In June, reports indicated that OYO was set to raise equity capital from Microsoft at a valuation of $9 billion.
The development comes soon after OYO was reported to have appointed investment banks for its public market debut to raise $1.2 billion.
Earlier this year, OYO had raised $660 million in debt from global institutional investors including Fidelity Investments to settle its previous debts and to invest in product and technology.
The company backed by the likes of SoftBank group Corp, Lightspeed Venture Partners, Sequoia Capital and others was also in the news for claims worth Rs 160 crore submitted by hotel owners to the National Company Law Appellate Tribunal, which dismissed the proceedings in July.
Hindustan Media Ventures which is controlled by HT Media Ltd has invested Rs 54 crore in the company in January 2021. HT Media owns Mosaic Media Ventures which publishes TechCircle and VCCircle.