Airbnb has announced that it has raised $1 billion in another round of investment funding.
Airbnb Bags $1bn in Investment Funding For Global Expansion
Airbnb, a short-term rental company has secured an additional $1 billion at a time when there is increased investor interest in fast–growing businesses especially in the tech space.
The company made this official announcement in a securities filing on Thursday indicating the money was raised in an investment round that started last summer.
Although the investors are unnamed, they valued the company at $30 billion.
Founded in 2008, Airbnb has raised over $3 billion in investment funding and bagged a $1 billion loan according to reports by research company CB Insights.
The San Francisco based company is the second most valuable private firm in the United States after the ride–hailing company, Uber.
So far, Airbnb has not commented on the widely reported filing.
The completion of this round of funding comes only days after the Snap IPO. Before its debut, Snap, the maker of messaging application Snapchat, was also among the most highly valued private companies.
The IPO has raised questions about which companies in tech may debut their own IPO this year.
Indeed, Airbnb has been propositioned as a much-anticipated candidate for an IPO. The company is not using investor money to pay for operation as it is making profits, according to people knowledgeable on the matter.
However, Airbnb chief executive, Brian Chesky, said in an interview that the company was not looking for a public offering debut any time soon.
He said last November, “I think companies should go public when it is the best thing to do so, but we do not have those immediate needs.”
Airbnb helps travelers connect with people who are looking to rent their homes for short durations.
The company says it has over three million listings across more than 190 countries.
The tech company is expanding its operations into restaurant reservations, property management and payment.
At the start of the year, Airbnb confirmed that it had acquired Tilt, a payment startup that makes it easier for people to split bills and Luxury Retreats, a vacation homes management company.
The company also said it was investing in restaurant reservation app, Resy.
There are reports that the hotel industry is displeased with Airbnb.
Notes derived from a board meeting of the American Hotel and Lodging Association in January indicated that the association planned to “counter Airbnb’s ‘we’re just helping the middle-class make ends meet’ by using personal narratives from consumers who have been harmed by the short term rental business.
The association’s notes further said that they would work with attorney generals and Congress to encourage actions against companies such as Airbnb.