China Investment Corp commits $100m in Airbnb’s $1b funding round

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A 3D printed people's models are seen in front of a displayed Airbnb logo in this illustration taken, June 8, 2016. REUTERS/Dado Ruvic/Illustration
A 3D printed people's models are seen in front of a displayed Airbnb logo in this illustration taken, June 8, 2016. REUTERS/Dado Ruvic/Illustration

San Francisco based home sharing company Airbnb raised $100 million from China Investment Corp, a Chinese sovereign wealth fund, as part of its $1 billion investment round that it had closed recenty, according to an SEC filing.

Bloomberg in a recent report had noted that that Airbnb Inc. closed is latest funding round at a valuation of about $31 billion, citing three people familiar with the company.

The latest funding of $1 billion investment comes within a year of the company raising $1.5 billion private funding round.

It is expected that the participation of China Investment Corp will help Airbnb’s smooth foray in China, and the move may also attract more Chinese travellers to use its services.

Previous funding rounds that helped with its China expansion included investors like Sequoia Capital which has investment focus on emerging tech companies in US, China, India and Israel; and the China Broadband Capital, a private equity firm whose focus on tech.

Other investors such as Hillhouse Capital Group and Horizons Ventures, the private investment arms of Hong Kong billionaire Li Ka-Shing and GGV Capital also took part in previous investment rounds in Airbnb.

Airbnb is also looking to acquire Xiaozhu.com, a Beijing based short-term vacation home sharing platform.

The company is also looking to expand its business line to areas like payments, property management and restaurant reservation.

Its competitors, Tujia.com, an online platform for discovering vacation rentals – raised $300 million investment led by All-Stars Investment Limited and Shenzhen-based Zhubaijia backed by CITIC GoldStone Investment Fund.

Also Read:

Airbnb closes $1b funding round with war chest for growth

Airbnb in talks to buy China’s home-rental rival Xiaozhu

China’s Airbnb Tujia.com to acquire Ctrip and Qunar’s homestay business