Oyo has received a $5 million investment from Microsoft, according to a regulatory filing in India.
News agency Reuters previously reported that Microsoft was looking to invest in Oyo at a $9 billion valuation.
The fast-growing budget chain has had to scale back its expansion plans in recent years as a result of the pandemic, but still reportedly plans to go public.
In July, Oyo announced it had raised debt funding worth $660 million from a number of global institutional investors. Oyo said it would use the money to pay off debts, strengthen the balance sheet and invest in product technology.