Singapore-based ride-hailing upstart Grab, is reportedly in talks with Oyo for investing around $100 million in the hotel marketplace. According to multiple reports, OYO Hotels & Homes is currently working on raising a $1 billion round and the on-going discussions about investment from Grab is also a part of that funding round. People aware of the development suggest that the deal could get closed in a couple of days.

A report from ETTech reveals that the proposed investment will be made through A1 Holdings Inc., which is an entity controlled by Grab. The entity was reportedly valued at $11 billion at the close of its funding round in August.

That valuation came from a Series H round which Grab is still completing, and is aimed at getting the company $3 Billion in capital. It has raised $2 billion of that money already and is looking to close the rest pretty soon. The company has also launched its own venture capital arm named Grab Ventures, which has already made four investments so far.

After the anticipated closure of the transaction, Gurgaon-based OYO would have raised $900 million in equity financing, with the final tranche of $100 million expected by the end of the year. OYO’s investment would be at a valuation of $5 billion, which the company commanded in September when SoftBank Vision Fund and others invested $800 million in the company, making it a ‘unicorn’ startup.

OYO is currently focused on expanding its presence internationally and has recently launched its hotel chain in three cities of Indonesia — Jakarta, Surabaya, and Palembang — bringing over 30 full-inventory, franchised and operated hotels, and over 1,000 rooms across the three Indonesian cities. The company has planned investment of $100 million for expanding in 35 cities in the country.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.