Airbnb has confirmed it has invested in Indian hospitality unicorn Oyo.
The Indian hospitality startup closed out a Series E funding round in December 2018, raising about $1 billion
Airbnb contributed about $150-200 million according to insiders.
The funding round also included sizable contributions from Asia’s ride-hailing titans Didi Chuxing and Grab, and values Oyo at nearly $5 billion.
It is a strategic investment for Airbnb which will see the fast-growing Oyo portfolio added to the Airbnb platform.
It makes sense for Airbnb as Oyo’s two biggest markets – India and China – are ones which Airbnb is targeting in a big way.
Both are fast-growing markets for Airbnb, but it is still some way from being the dominant player in either, thanks to Oyo and other rivals.
Oyo also specializes in managing independent hotels and has a growing Homes division, both of which are complementary to the Airbnb business strategy.
Airbnb’s ‘global footprint and access to local communities’ will open new opportunities for Oyo, the Indian company said.
It paves the way for a presence of sorts in the US market, which is something Oyo has been keen to explore in recent months.
AirBnB and Oyo will reportedly work on a number of different projects together.
