Airbnb has invested around $150-200 million in Indian hospitality and accommodation chain of Oyo Hotels & Homes, presenting it the third consecutive vital investor to acquire a stake in the Gurugram-based firm. A portion of the venture, Oyo hotels are also expected to record its assets on the San Francisco-headquartered company’s platform.
The investment estimated the Indian firm at a few over $5 billion, according to personalities knowledgeable of the aspects of the deal. Oyo has made up approximately $1.2 billion in current capital. According to the reports by different media platforms, Airbnb, which was last priced at $31 billion, has been concentrating on emerging into an end-to-end tour stage. The firm, which is also slated to go unrestricted, has more than multiplied the number of places free in assets classified as boutique resorts, bed-and-breakfasts, hotels and other hospitality venues like spa and resorts.
The funding is assumed to be jointly profitable for both organizations. For Airbnb, listing Oyo’s hotel rooms under the same platform will eventually expand its catalogue in the competitive market where it is yet to make a big impression.
Both firms are examining possibilities to cooperate on a scale of projects, including making Oyo accommodations available on the Airbnb platform,” said an Oyo official on the state of anonymity. Airbnb is estimated to have about 45,000 catalogues on its website in India. Its co-founder Nathan Blecharczyk had told media during his visit to India in February that India was amongst the five quickest expanding markets for the company globally.
Oyo, according to the firm’s information is already in over 259 cities of India with 8,800-plus hotels and maintains over 173,000 rooms of the hotel under its label. In China, which Oyo views as its secondary home business, subsidiary Oyo Jiudian is already in 280 cities, serving more than 5,000 hotels and 260,000 hospitality rooms as of January 2019.