OYO, which started five years ago as a platform to book budget hotels in India, currently operates 460,000 rooms across eight countries including China, Malaysia, Indonesia and the United Kingdom. The company has previously stated it wishes to be the largest hotel chain within five years.
Neither Airbnb nor OYO would comment on the size of the investment, but it is reported to be as much as $200m (£153m).
Greg Greeley, president of Homes at Airbnb, said in a statement: “Emerging markets like India and China are some of Airbnb’s fastest-growing, with our growth increasingly powered by tourism to and from these markets. In many of these markets, OYO is empowering local hospitality entrepreneurs to provide more options to more travelers.”
Maninder Gulati, OYO’s global strategy head, added: “Airbnb’s strong global footprints and access to local communities will open up new opportunities for OYO… to strengthen and grow.”
The news follows Airbnb’s recent acquisition of hotel booking site HotelTonight for an undisclosed sum. HotelTonight, which was valued at £354m in its last fundraising round in 2017, helps hotels fill vacant rooms to last-minute travellers at lower prices.