Airbnb To Invest $100m-$200m In India's OYO
Airbnb is investing between $100 million and $200 million in SoftBank Group-backed Indian hotel start-up OYO, a source with direct knowledge of the matter told Reuters, as it dives deeper into the hotel-booking business.
Airbnb said this week that it had invested in OYO's latest funding round and that it will look at ways to make the Indian start-up's accommodation available on its platform. It did not disclose details of the deal.
The investment will give Airbnb access to a variety of franchised or leased hotels, helping it to lure travellers who have shied away from the risks and quirks of renting a stranger's home.
Last month, Airbnb acquired HotelTonight, an app for finding hotel rooms at a discount, with an eye on a variety of travellers ahead of the US company's 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 at Airbnb.
OYO, which raised $1 billion last year from investors including SoftBank and ride-hailing firm Grab, operates in India, China, Britain, Dubai, Indonesia and Malaysia.
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.