Oyo books $200mn funding from Airbnb

Airbnb has invested $150-200 million in hospitality chain Oyo Hotels & Homes, making it the third successive strategic investor to buy a stake in the Gurgaon-based company. As part of the deal, Oyo is also likely to list its properties on the San Francisco-headquartered company's platform.

The funding valued the Indian company at a little over $5 billion. Oyo has mopped up nearly $1.2 billion in fresh capital in this round.

Airbnb's investment - a part of Oyo's Series E equity financing round that began in September 2018 - also highlights the US company's attempts to push deeper into Asia's third-largest economy and evolve into an end-to-end travel services platform.

Maninder Gulati, global chief strategy officer, Oyo Hotels & Homes, said 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.”

For Airbnb, listing Oyo's rooms under management will significantly boost its inventory in a market where it is yet to make a big impact. On the other hand, the listings on Airbnb will allow SoftBank-backed Oyo to expand more rapidly in newer geographies given the company's global plans.

The six-year-old company has now raised around $1.5 billion across rounds.