Airbnb confirms Oyo investment

Airbnb has invested an undisclosed amount in Oyo, the two companies confirmed today.

The announcement comes after rumors emerged last month that the two companies were negotiating a potential funding deal.

Photo credit: moovstock / 123RF

While the duo didn’t provide any further detail on their partnership, the investment in the Indian hotel reservations platform could give Airbnb access to its inventory of franchised and leased budget hotels.

The US on-demand accommodation giant is seeking ways to tap travellers who are less comfortable with renting a stranger’s home, or have requirements that make a hotel room a more appropriate option.

Early last month, it agreed to acquire US hotel-booking site HotelTonight in a deal reportedly worth US$400 million.

“Airbnb’s strong global footprints and access to local communities will open up new opportunities for Oyo Hotels & Homes to strengthen and grow while staying true to our core value proposition,” said Maninder Gulati, Oyo’s global chief strategy officer, in a statement. “We’re excited by the possibilities and committed to bringing benefits to the millions of travelers who can now rely on Airbnb and Oyo to find a home away from home.”

Oyo operates in India, China, Southeast Asia, the Middle East, and the UK.

Its series E round has raised over US$1 billion from investors including Softbank, Grab, and Didi Chuxing. Last week, it was reported to have acquired Chinese competitor Qianyu.