Airbnb, a leading home-renting company that is based out of San Francisco, recently invested about $150 million to $200 million in Oyo Hotels & Homes as part of the latter’s Series E fund raising round through which it raised over $1 billion in total. Airbnb is the third consecutive strategic investor that has bought a stake in Oyo. As part of this deal, it is expected that Oyo will list all its properties on Airbnb’s platform. With this infusion of funds, Gurgaon-based Oyo is valued at a little more than $5 million.
Airbnb has now joined the league of top investors in Oyo including SoftBank, Grab, and Didi Chuxing, which led the Series E round. This is one of the first investments made by a major US-based private-sector internet company in an Indian startup. In the past, companies based out of the US have either set up their own companies in India like Uber or made small investments in Indian firms to assess the market potential.
The investment is likely to be beneficial for both Oyo and Airbnb. Listing Oyo’s properties under the Airbnb platform will boost Airbnb’s inventory in the Indian market. For Oyo, its listing on the Airbnb platform will help it expand to new geographies, given that the company has plans to expand internationally.
Airbnb is said to have around 45,000 listings on its Indian platform. Oyo, as per data from the company, manages more than 1,73,000 rooms in 8,700 plus buildings. Oyo is present in more than 259 cities in the country. Similarly, in China, Oyo Jiudian, which is Oyo’s subsidiary in the country, has a presence in 280 companies and operates over 5,000 hotels and around 2,60,000 rooms, as on January 2019.
In the Series E funding round, Softbank invested $800 million into the company, while Lightspeed Ventures, Greenoaks Capital, and Sequoia Capital also participated in the funding round.
Source: The Economic Times, The Times of India, Livemint