The Oyo-Airbnb deal will immediately allow Oyo’s 10,000 villas and homes in India, Dubai and other markets to be listed on Airbnb
The Airbnb-Oyo deal is seen as bolstering the US company's hotel-booking business ahead of a planned IPO
Bengaluru:Airbnb Inc., the world’s largest home-sharing platform, on Monday said it has invested an undisclosed amount in India’s budget hotel startup, Oyo (Oravel Stays Pvt. Ltd), as the US company seeks to bolster its hotel-booking business ahead of a planned IPO. Two people familiar with the matter said Airbnb has invested between $150 million and $200 million in Oyo as part of the Indian startup’s Series E funding round.
“A lot of these markets have evolved independent of each other and 1-2 players have built dominance in a local market or single country market or a local product market," said Aditya Agarwal, head of corporate strategy at Cleartrip. “And when you’re trying to enter these markets, it would be inefficient to compete with each other rather than collaborate with each other."
Since it entered the country almost three years ago, India has become an important market for Airbnb. While the home-rental platform has about 47,000 properties listed in India, globally Airbnb has almost 6 million listings across 81,000 cities in 191 countries.
“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 has also been aggressively expanding its global footprint over the past one year by entering markets such as China, the US, United Arab Emirates and the Philippines, among others.
“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 & Homes.
In India, Oyo is present in more than 259 cities, with more than 8,700 buildings and over 173,000 rooms, the hotel startup claims.