Airbnb raises $1B, no IPO plans 'anytime soon'

SAN FRANCISCO — Airbnb has raised more than $1 billion at a valuation of about $31 billion, helping the home-rental company put off an initial public offering.

The San Francisco-based home-rental company disclosed the funding in a filing with the Securities and Exchange Commission.

The large fundraising round relieves some of the pressure to go public. Airbnb is the second-most valuable start-up in the U.S. behind Uber whose worth private investors have pegged at nearly $70 billion. A person familiar with the details who was not authorized to discuss them publicly said Airbnb has no plans to go public "anytime soon."

Airbnb also turned a profit on an operating basis in the second half of 2016 and anticipates it will continue to be profitable before interest, tax, depreciation and amortization, the person said. Airbnb makes money by taking a 3% cut of each booking and a 6% to 12% service fee from guests.

With the cash infusion, Airbnb can press forward with it global expansion. Airbnb CEO and co-founder Brian Chesky recently embarked on six-city tour: London, New York, Cape Town, New Delhi, Beijing and Shanghai.

Since launching in 2008, Airbnb has raised more than $3 billion.

Last fall Airbnb raised about $555 million as part of its "F" funding round. It has closed the round by nearly doubling it, adding nearly $448 million more. The round was "oversubscribed," the person said.

Since its launch in 2008, Airbnb has raised more than $3 billion. CNBC first reported the funding news.

(© 2017 USA TODAY)


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