The Indian hotel chain has announced plans to use Airbnb’s resources to grow their capacity on a global level
As the industry trends are changing, there have been an increasing number of instances of larger rival companies, buying out smaller competitors, or investing in their businesses to ensure a mutual growth. OYO Rooms, an India based budget accommodation startup, has become the latest addition to this trend, as they confirmed that Airbnb, a long time competitor, has decided to invest fresh funds into the Indian company. Both companies have been secretive about the inner workings of the deal, and while no precise figure has been revealed, reports suggest that OYO has gained an investment of US$ 100-200 million from the US based company.
The new funding comes as an added boost for OYO, as the company managed to procure a combined funding of US$ 1 billion from various companies, in late 2018, and they proclaimed that the company had an estimated value of US$ 5 billion. However, partnering with Airbnb comes with a host of incentives for the company. Airbnb have established themselves as the segment leaders in the industry, and have a strong network of hotels and homes across the globe. OYO on the other hand, is a comparatively nascent company, however, they too have managed to spread operations to more than 500 cities, in 10 countries.
The partnership will be of great value to OYO, who have already announced plans to integrate OYO hotels and homes into the Airbnb app, to reach a wider audience. The two companies also have plans for combined projects in the near future. “As the sixth-largest hotel chain operator in the world, we, at OYO Hotels & Homes, are committed to offering our guests and travellers around the world, great quality living spaces. We are happy to have Airbnb as our partner in this vision,” said Maninder Gulati, global chief strategy officer at OYO Hotels & Homes, in an official statement, on April 1, 2019.
Subscribe to our newsletter to get notification about new updates,information, discount, etc..