Microsoft (NASDAQ:MSFT) has finalised a strategic investment for an undisclosed amount in SoftBank-backed Oyo Hotels & Homes, valuing the hospitality company around $9 billion, industry sources familiar with the matter told ET. Investment bankers said Oyo could be looking at adding more marquee strategic investors ahead of its initial public offering (IPO), which would follow last week's bumper local listing by food services platform Zomato. Sources told ET that the global technology major will initially buy a small stake, but it has the option to raise ownership later.

Oyo did not respond to ET's mailed queries. Microsoft said it had no comments to offer on the matter.