Airbnb Reportedly Raises $1.5 Billion, Valued at $25.5 Billion

California-based Airbnb, the online accommodations hub, has arranged to raise $1.5 billion (roughly Rs. 9,578 crores), sending its value up to $25.5 billion (roughly Rs. 1,62,820 crores), a source close to the deal told AFP on Saturday.

A group of American and Chinese investment funds were involved in the discussions which are aimed at expanding Airbnb's offerings in Asia, according to the source, who asked not to be named.

The funds are General Atlantic, Tiger Global Management, Kleiner Perkins Caufield & Byers, GGV Capital, Horizon Ventures and from China Hillhouse Capital Group and China Broadband.

The deal could be announced as soon as next week, the same source added.

It would be among the biggest corporate capital infusions by a tech firm, among the likes of VTC Uber ($2.8 billion, roughly Rs. 17,878 crores), China's online giant Alibaba ($1.6 billion, roughly Rs. 10,214 crores) and Facebook ($1.5 billion) before it went public.

At $25.5 billion (roughly Rs. 1,62,820 crores), Airbnb, which does not own a single hotel, would be worth more than hotel giants Marriott ($20.90 billion, roughly Rs. 1,33,432 crores), Starwood ($14 billion, roughly Rs. 89,380 crores) and Wyndham ($10.01 billion, roughly Rs. 63,905 crores). Hilton Worldwide is valued at $27.7 billion (roughly Rs. 1,768,40 crores).

Launched in San Francisco in 2008, the home rental company has boomed to a community of more than 35 million travelers in more than 34,000 cities. Airbnb continues to clash with local authorities in cities such as New York and Paris.

Since it is not publicly traded, Airbnb does not have to publish its figures. But its sales have surged from $250 million (roughly Rs. 1,600 crores) to $850 million (roughly Rs. 5,427 crores) in just two years.

It takes three percent of the transaction from the property owner, and 6-12 percent of the transaction from the traveler.