<article>As part of its bid to grab a larger share of the Chinese hospitality market, Indian budget hotels chain OYO Hotels has reportedly acquired Chinese rival Qianyu.</article>

As part of its bid to grab a larger share of the Chinese hospitality market, Indian budget hotels chain OYO Hotels has reportedly acquired Chinese rival Qianyu.
According to a source-based <a href="https://entrackr.com/2019/03/oyo-acquires-qiayu-china/" target="_blank" rel="noopener noreferrer">report </a>by Entracker, OYO&#8217;s first acquisition in China was completed last week. Sources cited in the report said the acquisition would help OYO accelerate its expansion in the country and gain local talent and expertise.
OYO has been betting big on the China market and announced its plans to invest $600 million in the country in September 2018. Last month, it reportedly raised $100 million from China’s ride-hailing giant Didi Chuxing.
In December, it had 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, OYO garnered $800 million from investors led by SoftBank Vision Fund, Lightspeed Venture Partners, Sequoia Capital, and Greenoaks Capital.
OYO had forayed into the Chinese market in November 2017 and claims to have an inventory of 360,000 rooms at more than 5,000 hotels across 280 cities in China as of January 2019.
Qiayu follows a business model similar to that of OYO. It uses the franchise model to bring mid-scale hotels, which it renovates, under its brand.
According to the news report, the transaction provided an exit to the Chinese company&#8217;s investors including Xu Xiaoping’s Reality Fund, Gaochun Capital, Ali’s Yuanhao Capital, and Didi’s investor Wang Gang.
To cash in on OYO&#8217;s presence in China, global accommodation sharing site Airbnb is reportedly in discussions to invest around $100-200 million in the SoftBank-backed Indian startup.
Globally, the company 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. OYO recently also said it planned to invest $200 million to expand its operations in India and South Asia.
OYO has been actively taking the inorganic route to support its expansion. It recently acquired coworking space provider Innov8 and an online marketplace for wedding venues and vendors, Weddingz.
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OYO has been betting big on the China market and allocated $600 million for investments in the country in September 2018.

India's OYO Hotels acquires smaller Chinese rival Qianyu: Report

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India's OYO Hotels acquires smaller Chinese rival Qianyu: Report

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