Tencent is planning to lead a new investment round in Indian budget hotel operators OYO Rooms, according to a report by The Times of India.

The Shenzhen-based internet giant is reportedly in talks to lead an investment round to raise more than 300 million U.S. dollars for the Indian company, which would reach a valuation of more than 2 billion U.S. dollars.

The move will more than double OYO's valuation, previously set at 850 million U.S. dollars after an investment by Japanese internet backer SoftBank.

The investment will help the company expand operations in China, the report said, where it runs more than 11,000 rooms in 26 cities and employs more than 2,000 people.

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