Airbnb is continuing to widen its focus beyond ‘unconventional’ hotels as it gets ready for a much-anticipated IPO. Following its acquisition of HotelTonight last month, the company has picked today (April Fools’ Day) to confirm that it invested in India’s OYO — a startup that manages budget hotels and other stays.
The deal has been rumored for a couple of months and it is additional to OYO’s (then) $1 billion Series E round, which was led by SoftBank’s Vision Fund and included participation from ride-hailing duo Grab of Southeast Asia and China’s Didi Chuxing. The deal, announced last September, also included Lightspeed, Sequoia and Greenoaks Capital, and valued OYO at around $5 billion.
Neither party confirmed the size of the deal announced today, but an industry source told TechCrunch that it is between $150 million and $200 million. OYO and Airbnb both declined to comment in response.
The company has now raised more than $1.5 billion from investors to date, including this new capital.
More than money, though, the deal is highly strategic for both sides.
OYO and Airbnb had previously been rivals of sorts, but OYO has pivoted toward hospitality services — including logistics and management — rather than simply aggregating budget hotels. Airbnb, with its HotelTonight acquisition, has shown it wants to be a booking destination across different types of verticals.
Click here to read complete article at Tech Crunch.