Grab, a ride-hailing service based in Southeast Asia, has made a $100 million investment in budget hotel network company OYO. This investment was part of a $1 billion Series E round of funding led by the SoftBank Vision Fund that closed in September, according to the Economic Times. And the deal was revealed in a regulatory filing in India.
Grab and OYO both count SoftBank as a major investor in their businesses. And OYO has raised more than $900 million in funding since it launched.
This is not the only strategic deal that Grab made. Grab has also invested in bike-sharing company oBike and grocery delivery service HappyFresh.
OYO is primarily focused on India and China. And it also available in Nepal, Malaysia, and the U.K. This round of funding will be used for funding growth internationally. Grab will be working closely with OYO to expand in Southeast Asia.
Photo Credit: OYO
Grab was also reportedly interested in partnering with OYO to potentially boost its GrabPay service, according to TechCrunch. GrabPay could become the preferred payment method for OYO in Southeast Asia.
OYO currently has more than 10,000 franchised or leased hotels in its network. And the service spans 350 cities across five countries. In China alone, OYO offers 87,000 rooms in 171 cities.
Earlier this year, Grab acquired Uber’s operations in Southeast Asia for an undisclosed amount. Uber took a 27.5% stake in Grab. And Uber CEO Dara Khosrowshahi joined Grab’s board of directors. Specifically, Grab took over Uber’s operations and assets in eight countries including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.