Airbnb, which is planning to go public by next year, has been looking towards India and China to meet its growth goals, and OYO with its sizeable footprint in these two markets fits in neatly with these plans.

The company is in discussions to invest USD 100 million to USD 200 million in OYO to meet its growth goals in India and China, and amplify its growing focus on the hotel business.

In both these markets, among the fastest-growing globally, Airbnb has a relatively small presence.