Grab invests $100 million into OYO
OYO a budgeted hotel providing service in India received a $100 million investment from Grab. The investment was part of a $1 billion Series E round led by SoftBank’s Vision Fund. Grab has keen interest in entering the Indian market because of its huge consumer base.
Grab has been investing a lot lately.
Southeast Asian ride-hailing firm Grab has been strategically investing in Southeast Asia. It has invested in bike-sharing startup oBike and grocery delivery service HappyFresh. Also around $100 million for Indonesia-based offline payment network Kudo.
Grab has already partnered with travel giant Booking. That has recently invested $200 million in its business helping it offer exclusive deals to its users. This new funding from Grab can help OYO offer more deals to its existing users and attract new ones as well.
OYO has been highly popular in India & China
It has been gaining popularity in the Indian market as it offers good hotels that fit the budget. And also claims to have over 10,000 franchised or leased hotels in its network. It has reached up to 350 cities across five countries. India and China have most of these franchises.
The company is also active in Nepal, Malaysia and now UK also. Going international is considered the main reason behind the highly valued Series E funding.
Grab is eyeing the Southeast market for its “GrabPay”
Southeast Asia is a region with over 650 million consumers and a fast growing digital economy. Experts believe Grab through OYO wants to boost its GrabPay service in the Indian and Chinese market. It is speculated that GrabPay could become the preferred payment method for OYO in Southeast Asia.
Its investment will also help OYO in its expansion into the International arena, mainly UK. This investment would pay off fairly good for Grab if OYO can excel in UK also. As UK is one of the most preferred destinations for Southeast Asians.