An employee sits next to the logo of OYO, India’s largest and fastest-growing hotel chain, at the reception of a hotel in New Delhi, India, September 25, 2018. REUTERS/Anushree Fadnavis
(Reuters) – Home-renting company Airbnb will invest between $100 and $200 million in SoftBank Group-backed Indian hotel start-up OYO, a source with direct knowledge of the matter told Reuters, as it dives deeper into the hotel-booking business.
Airbnb said earlier on Monday it has invested in OYO’s latest funding round and it will look at ways to make the Indian start-up’s accommodation available on its platform. It did not disclose details of the deal.
The investment will give U.S.-based Airbnb access to a variety of franchised or leased hotels, helping it lure travelers who have shied away from the risks and quirks of renting a stranger’s home.
Airbnb, last month bought HotelTonight, an app for finding hotel rooms at a discount, with an eye on a variety of travelers ahead of the U.S. company’s hotly anticipated initial public offering.
“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, Airbnb.
OYO, which raised $1 billion last year from investors including SoftBank and ride-hailing firm Grab, operates in India, China, Britain, Dubai, Indonesia and Malaysia.
It expects revenue to more than treble every year over the next five years, as it expands locally and in international markets, a senior company executive told Reuters earlier this year.
“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 & Home.
Reporting by Tanvi Mehta in Mumbai and Aditi Shah in New Delhi; Editing by Subhranshu Sahu/Keith Weir