Date: 1st April 2019
Airbnb is looking to increase the variety of its hotel-booking service following which it invested in India’s OYO. The investment amounted between $100 and $200 million.
OYO operates in various countries including India, China, Bhutan, Indonesia, Malaysia
US-based Airbnb said on Monday that it wishes to get access to the hotels associated with the Indian start-up on its platform. It comes as the company acknowledges the fact that travelers do not always find it comfortable to rent a complete stranger’s house.
The investment in OYO would connect the company with various leased and franchised hotels in India and other South East Asian countries. The financial and other details have not been put out clearly, though.
Airbnb is expected to roll out it’s initial public offering soon. Last month, it bought HotelTonight in an attempt to capture a different segment of customers.
President of Homes at Airbnb, Greg Greeley, said in a statement that the rapidly growing markets in India and China are an opportunity for the company. Besides that, tourism from and to these countries is also rising.
Investment in OYO clearly demonstrates this belief. The company claims that its revenue would rise continuously for at least the next five years considering its plans to increase its markets locally and internationally.
OYO’s Global Chief Strategy Officer, Maninder Gulati, said that the investment from Airbnb would open the doors for various opportunities for the hotel-booking company as Airbnb has a global image and connections with numerous local communities.