Airbnb confirms investment in Indian hospitality brand OYO

Airbnb has confirmed investment in India-based hospitality company OYO Hotels & Homes.

Terms of the deal, which had been rumored for the past couple of months, were not disclosed, though a source told Reuters it’s estimated between $100 million and $200 million.

The investment was part of OYO’s $1 billion Series E round initially reported in September. SoftBank Vision Fund led that round, with participation from Lightspeed Venture Partners, Sequoia and Greenoaks Capital.

No official announcement has been made regarding how the two brands will work together, but the companies are exploring options to bring OYO’s inventory to the Airbnb platform.

For Airbnb, the move signals a growing commitment to its hotels side of the business, which got a major boost last month with its acquisition of HotelTonight.

It also speaks to the company’s ambitions in India and China, with Airbnb Homes president Greg Greeley saying in a statement: “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.

“In many of these markets, OYO is empowering local hospitality entrepreneurs to provide more options to more travelers. We share a dedication to offering people more choices when traveling, and we’re excited to partner with OYO as we work to make Airbnb for everyone.”

OYO - across its brands OYO Homes, OYO Townhouses, OYO Living, OYO Rooms, SilverKey and Pallete - says it finished 2018 with 458,000 fully controlled, leased and franchised rooms in more than 18,00 properties in more than 500 cities in India, China, Malaysia, Nepal, Indonesia, United Arab Emirates, the Philippines and the United Kingdom.

For OYO, the deal could help the brand break in Europe and the U.K., where operations are already underway, as well as in the United States.

Says Maninder Gulati, global chief strategy officer at OYO Hotels & Homes, in a statement: “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.

“We’re excited by the possibilities and committed to bringing benefits to the millions of travelers who can now rely on Airbnb and OYO Hotels & Homes to find a home away from home.”