Tech giant Microsoft has recently invested $5 million in OYO at a $9.6 billion valuation

US-based tech giant Microsoft has recently made a deal with Oyo to invest $5mn. SoftBank backs Oyo, and the latest deal is being considered as one of the biggest strategic alliances by both companies. Even though the sale might look small from the outside, the objective, however, is very wide. This includes allowing the key investors to show the value on paper on the basis of this new deal. Various reports suggest that both the companies have drawn the deal without giving away much information regarding the transaction.

The indications of the new deal were given three weeks ago in the media when Oyo issued its IPO. As of now, Oyo has allotted five equity shares for the tech giant, and along with that, 80 preference shares were also issued at $58,490 per share. As the company goes forward, it will be getting more money from the tech giant. Previously when Oyo raised funds from Hindustan Media Venture Ltd, the company was valued at $9 billion, and it raised $7 million. However, it must be noted that Oyo’s valuation significantly fell from $10 billion in November 2019 to $8 billion in August 2020. The sharp decline in valuation was mainly due to the Covid 19 pandemic.