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AirBnB raises $1bn of investment funding | AirBnB raises $1bn of investment funding |
(about 4 hours later) | |
Home rental company AirBnB has raised $1bn (£821m) of investment funding in a deal that values the firm at $31bn. | Home rental company AirBnB has raised $1bn (£821m) of investment funding in a deal that values the firm at $31bn. |
The San Francisco-based firm disclosed the investment in a filing to the US Securities and Exchange Commission. | The San Francisco-based firm disclosed the investment in a filing to the US Securities and Exchange Commission. |
AirBnB did not comment on how it would use the funding, but is expected to expand its operations globally. | AirBnB did not comment on how it would use the funding, but is expected to expand its operations globally. |
It has grown rapidly since its launch in 2008, and currently operates in 65,000 cities worldwide. | It has grown rapidly since its launch in 2008, and currently operates in 65,000 cities worldwide. |
The firm, which does not publish its sales figures, makes its money by enabling homeowners to rent out their homes. | The firm, which does not publish its sales figures, makes its money by enabling homeowners to rent out their homes. |
It takes a 3% cut of each booking and a 6% to 12% service charge from guests. | It takes a 3% cut of each booking and a 6% to 12% service charge from guests. |
'No IPO plans' | 'No IPO plans' |
It made its first profit in the second half of 2016, and will continue to be profitable this year on an underlying basis, according to media stories. | It made its first profit in the second half of 2016, and will continue to be profitable this year on an underlying basis, according to media stories. |
They also reported that the firm had no plans to list its shares on the stock market in the near future. | They also reported that the firm had no plans to list its shares on the stock market in the near future. |
AirBnB has been diversifying and recently began offering users new services, such as tailor-made city tours and exclusive experiences with local experts. | |
However, it has also faced criticism over claims it is driving up rents and contributing to housing shortages in some cities. | However, it has also faced criticism over claims it is driving up rents and contributing to housing shortages in some cities. |
In December, under pressure from MPs, the firm said it would block hosts in London from renting out homes for more than 90 days a year without official consent. | In December, under pressure from MPs, the firm said it would block hosts in London from renting out homes for more than 90 days a year without official consent. |
It is also facing tougher regulations in New York, Berlin and Barcelona. | |
What is AirBnB? | What is AirBnB? |
The accommodation site lets people rent out their properties, often at prices undercutting hotels and traditional Bed and Breakfasts. | The accommodation site lets people rent out their properties, often at prices undercutting hotels and traditional Bed and Breakfasts. |
It was started by university friends Brian Chesky and Joe Gebbia in 2008 to help pay the rent on their San Francisco flat. | It was started by university friends Brian Chesky and Joe Gebbia in 2008 to help pay the rent on their San Francisco flat. |
As the site expanded into more and more cities, helped by the use of professional photographers, it attracted backers including Amazon founder Jeff Bezos and actor Ashton Kutcher. | As the site expanded into more and more cities, helped by the use of professional photographers, it attracted backers including Amazon founder Jeff Bezos and actor Ashton Kutcher. |
In total it has raised more than $3bn from investors and it is now the second most valuable start-up in the US after Uber, which is valued at about $70bn. | In total it has raised more than $3bn from investors and it is now the second most valuable start-up in the US after Uber, which is valued at about $70bn. |
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