Grab said to have invested $137m in hotels start-up

BENGALURU • Singapore-based ride-hailing firm Grab has invested US$100 million (S$137 million) in Indian hotel reservations start-up Oyo, a source with knowledge of the matter told Reuters yesterday.

Both companies are backed by Japan's SoftBank Group.

The investment by Grab is part of the US$1 billion fund raising that 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 US$900 million. Of this, US$800 million came from SoftBank and other investors.

While it was not immediately clear what the funds would be used for, the deal could be similar to Grab's technology collaboration with Microsoft, the source said.

Grab, known as the Uber of South-east Asia, was valued at around US$11 billion at its last funding round in August, sources have told Reuters.

When contacted, 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 US$100 million in Oyo.

REUTERS

A version of this article appeared in the print edition of The Straits Times on December 04, 2018, with the headline 'Grab said to have invested $137m in hotels start-up'. Print Edition | Subscribe