Just a few days after raising a $250 million funding round from SoftBank Vision Fund, Oyo has today announced that it has received $10 million from China Lodging Group.
This strategic investment is a follow-on for the Series D funding round which was announced earlier this month.
Both the companies have signed an MoU to facilitate and strengthen collaboration to build a global market-leading hospitality business.
While there is no specific business agreement, both parties have said that they will “explore initiating knowledge and technology sharing projects of mutual interest.” This could constitute employee exchange program, and the sharing of tech and IP.
Jenny Zhang, CEO, China Lodging Group, has said in the statement,
The partnership will draw on the strengths of China Lodging Group’s visionary and experienced management team, market leadership through a multi-brand strategy, extensive hotel operations expertise, and strong loyalty programme, and OYO’s advanced technologies in the hospitality industry that enable transformation of hotel operations.
Commenting on the pact, Oyo Founder & CEO Ritesh Agarwal said,
We are very excited about this partnership – both in terms of potential opportunities and existing synergies through our complementary strengths and capabilities.
Oyo currently operates in over 230 cities across India, Malaysia and Nepal. The company has now so far raised around $450 million from SoftBank, Lightspeed Ventures and others.
Just like Oyo Rooms, China Lodging Group, which is currently valued at about $6.8 billion, focuses on budget hotels. It is a leading hotel operator and franchisor in China with 3,541 hotels across 369 cities.
According to Deutsche Bank, nearly two-thirds of India’s rooms supply in 2020–21 will consist of budget hotels. Criteo expects the online travel market in Asia-Pacific to be worth $446 billion in value by 2020.