According to regulatory filings disclosed this week, Microsoft has invested $5 million in Indian budget hotel chain Oyo. Oyo is now valued at $9.6 billion following the completion of the new investment round.

Earlier media reports indicated that the strategic investment could also involve Oyo shifting to Microsoft's cloud services. The company plans to file for an IPO later this year.

Founded in 2013, OYO Rooms is an Indian multinational hospitality chain of leased and franchised hotels, homes and living spaces, initially consisted mainly of budget hotels.