Home-renting company Airbnb has invested in Indian hotel reservation start-up OYO’s series E funding round, as it dives deeper into the hotel-booking business.
Airbnb did not disclose the details of its investment in OYO, however, as per sources, the round is close to between $100-$200 million.
It expects revenue to more than treble every year over the next five years, as it expands locally and in international markets, a senior company executive told Reuters earlier this year.”Airbnb’s strong global footprints and access to local communities will open up new opportunities for OYO Hotels & Homes…” said Maninder Gulati, global chief strategy officer at OYO Hotels & Home.
U.S.-based Airbnb will look at ways to make the OYO accommodation available on its platform, the company said on Monday.
The investment will give Airbnb access to a variety of franchised or leased hotels, helping it lure travellers who have shied away from the risks and quirks of renting a stranger’s home.
The company bought HotelTonight last month, an app for finding hotel rooms at a discount, with an eye on a variety of travellers ahead of a hotly anticipated initial public offering.
“Emerging markets like India and China are some of Airbnb’s fastest-growing, with our growth increasingly powered by tourism to and from these markets,” said Greg Greeley, president of homes, Airbnb.
OYO, which raised $1 billion last year from investors including SoftBank and ride-hailing firm Grab, operates in India, China, the United Kingdom, Dubai, Indonesia