The startup Airbnb revealed on Thursday that they added about $1 billion to their fund. This way, Airbnb relieved the pressure that was on the company to release their Initial Public Offering and now they have some extra cash to move beyond their core business and take on travel industry’s other areas.
The valuation of Airbnb, based in San Francisco, is now $31 billion and it still ranks as one of US’ most valuable startups. It is behind Uber only, who has the current worth of about $70 Billion.
Unlike other bigshot startups at Silicon Valley, which are losing a lot of cash each year, Airbnb is making money and this way they are positioning themselves as one of the most attractive companies valuing multibillion dollars in this area. The first profit for this startup was in the second half of 2016 and they expect to stay profitable in the current year.
The profitability of the company is expected to make Airbnb a promising candidate for IPO – especially when compared to startups like Snap Inc., who had released their IPO the past week even though the company lost $515 Million in 2016.
But Airbnb certainly has no plans to release their IPO soon. There was no official comment by the company on their latest funding round.
Last year’s revenue by Airbnb was $1.7 Billion and it is thinking of making about $2.8 Billion this year, according to PrivCo, a private data platform company. This company grew from 4 employees in the beginning to 2,900 last year.
Airbnb’s latest funding was part of their Series F funding round and they kicked off by raising $555 Million last fall. It closed the round by raising $448 Million this time. This was according to the document filed by the company with SEC on Thursday.
Since the company’s inception in 2008, Airbnb raised about $3 Billion.
The filing on Thursday didn’t actually disclose the source of the money contribution to Airbnb’s latest round of funding, but according to a person close to the matter, it was an oversubscribed round and the focus of the company was on investors that can support the company’s long term growth plan.
These long term plans included the efforts of Airbnb to push beyond their home sharing signature concept. The company launched a feature “new experiences” in November, which allows travelers to book activities on this platform and also the lodging. The startup also plans to add a flight booking tool and wants the travelers to book each and everything related to the trip from Airbnb only.
With this latest fund money, Airbnb will be able to make their expanding plans into a reality, whether through acquisitions or development efforts and internal research. Last month, Airbnb acquired a rental company based in Canada known as Luxury Retreats and according to the reports, the company might do more acquisitions.