Airbnb has secured a $one billion financial investment from private fairness firms Silver Lake and Sixth Avenue Partners as it seeks to temperature the plunge in demand from customers due to the coronavirus pandemic.
The financial investment, which is a mixture of credit card debt and fairness, increases Airbnb’s cash reserves to about $four billion. The organization experienced previously raised $four.6 billion and reportedly experienced a valuation of $35 billion, producing it a single of the most hugely valued pre-IPO unicorns.
The more money “will assistance Airbnb’s ongoing get the job done to devote around the long term in its neighborhood of hosts who share their properties and encounters, as very well as the get the job done to serve all stakeholders in the Airbnb neighborhood,” Airbnb reported in a news launch.
The travel and leisure marketplace has taken a pounding from the coronavirus, with Airbnb asserting very last week that it was allocating $250 million to assist offset losses incurred by hosts. It reportedly held a cell phone meeting with bankers in March to examine extending an current $one billion credit card debt facility amid the virus-driven slowdown in demand from customers.
The organization will contribute $5 million of the new private fairness funds to a reduction fund that will provide grants well worth a complete of $15 million to Superhosts who rent out their individual dwelling and want assist paying their rent or mortgage loan.
In accordance to Skift, Airbnb is betting that “when there is a world-wide restoration from coronavirus travelers would be a lot more probable to seek stays at limited-term rentals in considerably less congested areas exactly where they can greater command the atmosphere and travel with people they know as an alternative of mixing with hotel company.”
“While the present atmosphere is plainly a challenging a single for the hospitality marketplace, the wish to travel and have genuine encounters is basic and enduring,” Silver Lake Co-CEO and Taking care of Lover Egon Durban reported.
“Airbnb’s diverse, world-wide, and resilient small business model is specifically very well suited to prosper as the world inevitably recovers and we all get back again out to practical experience it,” he added.
Silver Lake, a single of the most higher-profile tech traders, has a lot more than $43 billion in assets underneath management.