Singapore-based ride-hailing firm Grab has invested $100 million (roughly Rs. 704 crores) in Indian hotel-reservations startup Oyo, a source with knowledge of the matter told Reuters on Monday.
Both companies are backed by Japan’s SoftBank Group Corp.
The investment by Grab is part of the $1 billion (around Rs. 7,040 crores) fund raise Oyo announced in September in a bid to grow its business in India and China, and expand into new international markets.
Grab’s investment takes capital raised by the fast-growing hotel room aggregator in the funding round to up to $900 million (about Rs. 6,300 crores). Of this, $800 million (approximately Rs. 5,600 crores) came from SoftBank and others.
While it was not immediately clear what the funds would be used for, the deal could be similar to Grab’s technology collaboration deal with Microsoft, the source said.
Grab, known as the Uber of Southeast Asia, was valued at around $11 billion (roughly Rs. 77,400 crores) at its last funding round in August, sources have told Reuters.
Grab declined to comment, while Oyo did not immediately respond to Reuters’ requests for comment.
The Economic Times earlier reported that Grab was in advanced talks to invest $100 million in Oyo.