Singapore

SINGAPORE-based ride-hailing firm Grab has invested US$100 million in Indian hotel-reservations startup OYO, a source with knowledge of the matter said on Monday.

Both companies are backed by Japan's SoftBank Group Corp.

The investment by Grab is part of the US$1 billion fundraising 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 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 South-east Asia, was valued at around US$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 US$100 million in OYO. REUTERS