Investments, News

Airbnb Bags $100M at a Valuation of $25.5B

Airbnb has raised more than $100 million in a fresh round of fundraising, valuing the startup at the same $25.5 billion as it was in June when it had raised $1.5 billion.


An investor slide deck viewed by the Wall Street Journal’s Rolfe Winkler states that Airbnb generated $2.2 billion in bookings in the third quarter, and $340 million in revenues. Guests booked 23.8 million nights in the third quarter, compared with 11.3 million in the same quarter last year.

The company targets a revenue of $900 million for this year after projecting $825 million for the fund-raising completed in July. Further, a source close to the company said that it is close to attain profitability- most likely by 2016.

Airbnb’s model is increasingly putting pressure on companies like Priceline, and Expedia in their hotel booking business. Airbnb does not own properties and is not responsible for services like housekeeping. Also, it allows travelers to get cheaper accommodations along with an option to sublet the house.

The fact that this round has been raised at the same valuation as the previous round, indicates that unicorns, or private tech companies worth $1 billion or more are finding it difficult to convince investors to buy shares at continuously increasing valuations.

Have ideas to share? Submit a post on iamwire

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>