Nasdaq-listed online travel portal Yatra has inked a partnership with OYO to bring the online hospitality firm’s inventory on its platform to strengthen its footprint in tier II & III markets in India with budget hotels. Note that in October 2015, Online travel websites MakeMyTrip (MMT), Goibibo and Yatra had delisted budget hotel chains OYO from their platforms.

The partnership will enable customers an option to book hotels managed by OYO directly on the Yatra’s website. Customers will also be able to make changes to their OYO bookings as well as get customer support directly from Yatra.

With this tie-up, the OTA’s total hotel inventory will expand to over 70,000 hotels across 130 cities in India, the online travel agency said in a statement. Yatra claimed to have 65,000 properties on its homestay and domestic hotel segment in India at the time of its Q1FY18 results.

Why now?

After MakeMyTrip-Goibibo merger and dominance in the market, Yatra is may be trying to hold its ground in the Online Travel Agency (OTA) with listing OYO again on its platform. However, it is unclear how many users will book OYO via Yatra, as two year ago, OYO’s Chief Growth Officer, Kavikrut had told MediaNama that only 10-15% of its customers were booking OYOs via OTAs.

Yatra’s highlights

Two weeks ago, Yatra also closed a debt funding of  Rs 100 crore ($15.4 million) from Innoven Capital, to meet the working capital required by Yatra to grow further and expand its offerings across geographies.

In July, it acquired Air Travel Bureau Ltd (ATB) to strengthen its position in the more reliable corporate travel business vertical.

Yatra’s losses narrowed down to Rs 4.83 crore for the quarter ended June 2017 (Q1-FY18) from a loss of Rs 83.02 crore in the previous quarter. Losses for the same quarter last year were Rs 8.09 crore. For its Hotels and Packages business, the company registered an increase of 38.8% YoY to Rs 43.84 crore for the period, from Rs 31.58 crore in the same period last year. The Gross bookings increased by 16.4% YoY from Rs 289.64 crore. The number of nights spent by the company’s customers (Room Nights) on its hotel listings was at 0.5 million in Q1FY18, up by 70.5% YoY.