Home-stay aggregator Airbnb, according to a regulatory filing spotted by CB Insights, has authorized the sale of $153 million worth of Series F shares in an effort to raise its current fund-raising round to a total of $1 billion. This round will be an extension of the previously funding round, where the company raised $555 million in September earlier this year.
The said equity will be available to investors at $105 per share, which is consistent with the previous round as well as $30 billion valuation. It is, however, way more than the $93 per share at which the company has picked up funding last year. The investors for the previous round included Capital G, Technology Crossover Ventures, Sequoia Capital, GGV Capital and others. Whereas those who’ll pick up the equity shares which have been authorized now is still unknown.
This authorization of more equity by Airbnb comes on the heels of the company launching ‘Experiences,’ a complete overhaul of the travel experience for its users. Instead of offering just homes for rent, the company is now looking to be your most competent itinerary planner. It has expanded the scope of its platform to now enable travelers to immerse themselves in activities with the local community. These features have been added to help you create some ‘magical’ and ‘meaningful’ moments in the process.
Now, in addition, to booking homes for rent while on holidays, the users now have the option to book tours, events, and experiences offered by the hosts and locals. It will give you a chance to connect with communities, you wouldn’t otherwise get a chance to meet on a trip.
The dilution of equity shares will enable the company to raise more funds but it is an indicator of the fact that Airbnb is currently not ready to launch an IPO and go public. These funds could enable the company to rapidly pump money into the expansion of new services, adding more hosts and users. This fundraising round will help Airbnb pave the way for the IPO, which has long been speculated by analysts.
