Airbnb, the home-renting company is going to invest between USD 150 Million and USD 200 Million in India’s OYO – a startup that manages budget hotels and other stays. The India hotel chain aims at becoming the world’s biggest within five years.
The company took part in the latest funding round at OYO, one of India’s most valuable startups, it said Monday. Neither Airbnb nor OYO would disclose further details on the size of the investment, but according to media reports, it could be as much as $200 million. It is reported that in 2018, OYO was already valued at USD 5 Billion.
The investment will give U.S.-based Airbnb access to a variety of franchised or leased hotels, helping it to attract travelers who have shied away from the risks of renting a stranger’s home.
“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,” Greg Greeley, president of Homes at Airbnb, said in a statement. “In many of these markets, OYO is empowering local hospitality entrepreneurs to provide more options to more travelers,” he added.
Overall, OYO claims to cover close to 500,000 rooms across 13,000 hotels and 6,000 homes in eight countries: India, China, Malaysia, Nepal, the U.K, UAE, Indonesia and the Philippines. OYO is also seeking opportunities to explore its market in Southeast Asia.
“Airbnb’s strong global footprints and access to local communities will open up new opportunities for OYO to strengthen and grow,” Maninder Gulati, OYO’s global strategy head, said in a statement.