US-based hospitality service company AirBnB, from which India’s OYO might have drew inspiration, is in discussion to invest around $100-200 million in OYO to help Airbnb meet its growth goals in India and China., reported The Information.
The development comes within a few days after Airbnb has acquired HotelTonight, a US-based app for finding hotel rooms at a discount, for an estimated $400 million.
OYO, which recently raised $100 million from Star Virtue Investment of
Didi Chuxing, has 180000 rooms across 4000 leased and franchised properties in China and 149000 rooms in India, till November 2018.
Last month, OYO commenced its operations in Japan, through a joint venture (JV) with Yahoo Japan Corporation to form OYO Technology & Hospitality Company, Japan.
In September last year, OYO announced $600-million investment plan for China and a $200 million investment for expansion of its operations in India and South Asia.
For Airbnb, China is one of the four businesses the company has prioritized because of the country’s size and the fact that China has more millennials than the United States has citizens.
The Chinese version of Airbnb is called Tujia and it has the $1bn USD valuation in 2015 making it a Unicorn already. The other major Chinese firm is Xiaozhu.com which is a straight imitation of Airbnb.