In a statement released on September 9, 2021, Hospitality startup OYO Hotels said it would adopt Microsoft Azure as a key enabler to drive cloud-based innovations and reimagine the hospitality and travel tech industry.
The SoftBank-backed startup, preparing to file initial public offering (IPO) documents with market regulator Sebi in the coming weeks, entered a multi-year alliance with Microsoft Corp. to develop new travel technologies.
“OYO will adopt Microsoft Azure as a key enabler to drive cloud-based innovations and reimagine the hospitality and travel tech industry. The solutions will be geared to benefit patrons who operate the small and medium hotel and home storefronts,” the companies said in a joint statement.
Such changes have accelerated the way small and medium hotel businesses operate, leading to a slew of pioneering technologies and higher-tech adoption, which will further shape the future of hospitality, it added.
Microsoft invests in OYO ahead of IPO
Microsoft made a strategic equity investment in OYO earlier in August. In a registrar of company (ROC) filing, Oravel Stays, the parent firm of Oyo, said that Microsoft Corporation had invested nearly USD 5 million through the issuance of equity shares and compulsory convertible cumulative preference shares a private placement basis.
Oyo kicked off Series F2 round by allotting five equity shares and 80 preference shares to Microsoft corporation at an issue price of $58,490 per share to raise $5 million, regulatory filings show. In the future, the company may receive more money from Microsoft.
OYO will use Azure to enhance the digital consumer experience
Since the outbreak of the pandemic, there has been a massive shift in consumer behavior. While booking travel, consumers prefer platforms that enable social distancing, local travel, flexibility, faster booking, and improved customer experiences. A digital tour of the stay makes a huge impact on booking behavior.
Such changes have accelerated the way small, and medium hotel businesses operate, leading to a slew of pioneering technologies and higher-tech adoption, which will further shape the future of hospitality. OYO will develop Smart Room experiences for travelers on their platform, such as premium and customized in-room experiences for its guests as part of this alliance.
“Combining the power of Azure with the tech and product stack developed by OYO, we are looking forward to accelerating innovation in travel and hospitality,” said Microsoft India President Anant Maheshwari.
Using Microsoft’s Azure IoT, the experience will include self-check-in supported by a digital register of arrivals and departures and self-Know Your Customer (KYC) along with IoT-managed smart locks and virtual assistance.
“We are excited to join hands with Microsoft. It is inspiring to see how the Microsoft cloud is empowering digital natives like OYO to accelerate industry transformation and innovations, turning the challenges of a post-pandemic era into opportunities for the future,” said Abhinav Sinha, OYO Hotels and Homes, Global COO and Chief Product Officer.