Oravel Stays Pvt Ltd (Oyo) approved on July 16 the issue of
equity shares and convertible cumulative preference shares amounting to rupee
equivalent of $5 million to Microsoft in a private placement, according to a
filing by Oyo with the Registrar of Companies.
Last month, a source familiar with the matter had told
Reuters that Microsoft was in advanced talks to invest in Oyo at a $9 billion
valuation.
The hotel aggregator, in which Japanese conglomerate
SoftBank owns a 46 percent stake, endured months of layoffs, cost cuts and
losses during the COVID-19 pandemic.
But with easing travel curbs and increasing vaccinations,
travel demand is slowly recovering in India, with local tourism attractions
witnessing a higher traffic.
In early July, Oyo's founder and chief executive officer,
Ritesh Agarwal, said the firm would consider a potential public offering, but
did not provide a timeline.
India is currently witnessing an IPO frenzy. In July,
food-delivery firm Zomato saw a stellar debut. Berkshire Hathaway Inc-backed
Paytm and ride-hailing firm Ola, which is also backed by SoftBank, are among
other Indian startups looking to enter markets.
Last week, a financial news website reported that Oyo had
shortlisted JP Morgan, Kotak Mahindra Capital and Citi for a more than $1.2
billion initial share sale. Oyo did not respond to a request for comment on the
report.
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