Grab invests $100 million in Indian hotel startup OYO

Singapore-based ride-hailing firm Grab has invested $100 million 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 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. Of this, $800 million 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 Corp, the source said.

Grab, known as the Uber of Southeast Asia, was valued at around $11 billion 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.