San Francisco-headquartered Airbnb invests $75m in Indian hospitality company OYO

The Airbnb Inc. application is displayed in the App Store on an Apple Inc. iPhone in an arranged photograph taken in Arlington, Virginia, U.S., on Friday, March 8, 2019. Photographer: Andrew Harrer/Bloomberg

San Francisco-headquartered home renting firm Airbnb has invested about $75 million in the Series E funding round of Indian hospitality company Oyo Hotels & Homes (OYO).

According to the company’s filings with the Registrar of Companies (RoC) sourced by paper.vc, OYO has issued 2,163 Series E compulsory convertible cumulative preference shares (CCCPS) to Airbnb at a price per subscription share of Rs 23,85,348.288, equivalent to $74.9 million.

Airbnb had confirmed investing and picking up a stake in SoftBank-backed OYO earlier this month, but refused to divulge the financial details. As part of the investment, which was reported to be in the range of $150-200 million then, OYO is likely to list its properties on Airbnb’s platform.

“Airbnb’s strong global footprints and access to local communities will open up new opportunities for Oyo Hotels & Homes to strengthen and grow,” Maninder Gulati, global chief strategy officer at Oyo Hotels & Homes, had said in a statement.

While it is still unclear if the Series E funding round is over yet, Gurugram-based OYO has reportedly mopped up nearly $1.2 billion fresh capital in this round, which began in September last year.

In February, it reportedly raised $100 million from China’s ride-hailing giant Didi Chuxing. In December, it raised $100 million in a Series E round of funding from Singapore ride-hailing company Grab to expand its services in Southeast Asia. In September last year, OYO garnered $800 million from investors led by Softbank Vision Fund, Lightspeed Venture Partners, Sequoia Capital, and Greenoaks Capital.

Meanwhile, a Reuters report said that the fresh investment will allow Oyo’s 10,000 villas and homes in India, Dubai and other markets to be listed on the Airbnb platform, expanding Oyo’s international reach and strengthening Airbnb’s presence in Asia. India has become an important market for Airbnb since it entered the country three years ago. Airbnb has about 47,000 properties listed in India. Globally, it has almost 6 million listings across 81,000 cities in 191 countries.

For OYO, too, it’s a steal deal as it has been expanding aggressively in overseas markets. Operated by Oravel Stays Pvt Ltd, OYO is present in over 500 cities and 10 countries  –  India, China, Malaysia, Nepal, the UK, UAE, Indonesia, Saudi Arabia, the Philippines and more recently, Japan. It counts India and China as two of its biggest markets.

In a statement last month, OYO said it will invest Rs 1,400 crore ($200 million) to expand its businesses within the country and in South Asia, particularly Nepal, in 2019.

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