Singapore based ride hailing giant Grab has made it to the headlines for finalizing a proposed investment of $100 million investment in India’s hotel reservation startup Oyo, as a part of the ongoing funding round.
A news report published by Economic Times states that both the companies consider SoftBank as one of their significant investors and consider Indonesia as their key market. As per the Bloomberg, Grab, which is a direct competitor of Go-Jek, Indonesia’s ride-hailing and logistics startup has publicized its desire of entering into an array of sectors from grocery delivery to healthcare.
In October 2017, Oyo had announced the launch of its Indonesian operations, claim sources. During that period, the company launched with 30-full inventory franchised and operated hotels and more than 1000 rooms in Jakarta, Palembang, and Surabaya. The company has planned to invest $100 million in Indonesia and is seeking to launch in more than 35 cities by 2019, claim trusted sources.
Ritesh Agarwal, Founder of Oyo, was quoted saying that Indonesia is one of the topmost choices for global as well as Indian travelers and with Oyo’s market learnings and expertise, the company is ready to tap the opportunity.
According to sources familiar with the development, Grab raised $2 billion in 2018 and aims to seek $1 billion more. The firm has an existing venture investment division named Grab ventures, which according to its website has scored four investments to date.
Sources claim that after concluding the deal, Oyo would have raised $900 million in equity financing, with $100 of final tranche expected by the end of the year.
Meanwhile, Grab’s investment in Oyo would be valued at $5 billion that the hospitality chain demanded in September after an investor consortium headed by SoftBank Vision Fund directed $800 million and included the company into the Unicorn club, comprising startups with a net worth over $1 billion.