A couple of months after Singapore-based ride-hailing firm Grab invested $100 million in OYO Hotels & Homes, Chinese ride-hailing giant Didi Chuxing has reportedly put in $100 million in the hospitality firm.
According to a report in The Economic Times, the investment made through DiDi-controlled entity Star Virtue Investment is part of Oyo’s recently-closed $1 billion round that valued the company at $5 billion.
The Gurgaon-based company’s latest $1-billion financing was led by existing investor SoftBank Vision Fund, which invested $800 million into the company. The round was also joined by Sequoia Capital, Lightspeed Venture Partners and Greenoaks Capital.
Gurugram-based unicorn startup Oyo has raised a total of $1.6 billion across multiple funding rounds till date, according to Crunchbase.
Oyo and DiDi are both backed by SoftBank and are likely to find synergies in their plans to expand within Asia, especially in China. The investment by Grab, also part of SoftBank’s portfolio, was also seen as a way of paving the way for mutual growth in Southeast Asia.
According to the news report, DiDi will partner Oyo as it expands to new geographies and may deepen its strategic partnerships as they both grow globally. A majority of the capital raised in the latest round is likely to be earmarked for Oyo’s China operations. The company has also announced investments to the tune of around $100 million towards a planned expansion in Indonesia, along with $20 million for Malaysia and $50 million for the Philippines.
Oyo is present in multiple countries, including China, Malaysia, the UK, Nepal, Indonesia and the Philippines, besides India. Most recently, it was said to have opened an office in Dallas and started to renovate motels and no-frills hotels around Texas.