Oyo raises $75 Million from Airbnb.
Oyo has raised $1.1 Billion in Series E funding round.
Airbnb plans to make China its largest market globally by 2020.
San Francisco based home renting firm Airbnb has invested $75 Million in SoftBank backed home-grown hospitality firm Oyo. This investment has brought series E funding round of Oyo to $1.1 Billion. In this funding round Softbank Vision Fund, China’s Didi Chuxing also invested in massive amount. The Airbnb investment is made at the same $5-billion valuation at which OYO raised $800 million led by Vision Fund and $100 million each from Grab and Didi Chuxing. By this deal, Oyo will get access to Airbnb’s large traveler base which is spread globally and Airbnb will get access to OYO’s 173,000 rooms spread across 259 cities in India.
According to estimates this partnership will also lead synergies in China where Oyo has given tough competition to local players of China and spread its business portfolio having coverage of operations in 280 cities with 5,000 hotels and 260,000 rooms in China. It will assist Airbnb is pursuing its business in China because previously it has failed to operate its business in China. According to Vivek Durai, co-founder at the paper.VC, “If the China synergy does not work out for Airbnb, it may not invest further in Oyo.”
Airbnb offers access to over 6 million unique places with the facility to stay in more than 81,000 cities and 191 countries. It is seeing China as its largest market globally by 2020. The company aims to bring 1 billion users on its platform in the next 10 years and is looking at China and India as key markets to attain the same.
According to reports in international media, Siew Kum Hong, regional director of Airbnb Asia-Pacific said, Airbnb is going to double its marketing investment this year. Ritesh Agrawal co-founder and Group CEO said Oyo is also going to invest $600 Million in its China business and planning to provide its facilities in Tier IV and Tier V cities of China.
Oyo currently operates in more than 259 Indian cities with 8,700 hotels summing to approx 1.75 lakh rooms and has decided to invest $200 Million in its Indian business. In the past one year Oyo has aggressively spread its business in the overseas market including China, Philippines, UK, Saudi Arabia, Japan, and Indonesia. Oyo portfolio covers Oyo Rooms, Oyo Palette Resorts, Oyo Townhouse, Oyo collection O, Oyo Life, and Oyo Silverkey. Oyo is enhancing its business drastically.
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