Bengaluru: Airbnb Inc. has made a strategic investment in Indian hotel startup Oyo, in a bid to strengthen its hotel booking business, the US-based firm said on Monday. This investment, which is being touted at around $150-200 million, is part of Oyo's Series E funding.
As part of this strategic investment, Oyo’s listings will appear on the Airbnb platform, thereby increasing Oyo’s international presence and also strengthening Airbnb’s presence in the Asian markets. The Oyo-Airbnb deal will open up Oyo’s 10,000 homes and villas listings on Airbnb in India, Dubai and a few other markets.
“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 at Airbnb. Airbnb will look at ways to make Oyo listings available on its platform, the San Franciso-based firm said.
The Oyo-Airbnb deal comes just a few weeks after Airbnb bought HotelTonight, an app for finding hotel rooms at a discount, ahead of an initial public offering (IPO).
The Oyo-Airbnb deal is interesting because at one point the two hospitality startups were considered rivals. However, industry executives say Oyo is now seen as a "supplier" for Airbnb rather than a competitor.
Oyo has been in an expansion mode over the last one year. It has entered markets such as China, the US, UAE and the Philippines, among others.
“Airbnb's strong global footprint and access to local communities will open up new opportunities for OYO Hotels & Homes," said Maninder Gulati, global chief strategy officer at OYO Hotels & Homes.
In India, Oyo is present in over 259 cities, with more than 8,700 buildings and over 173,000 rooms, claims the company.
Reuters contributed to this story.
