Coronavirus hit, Airbnb raises $ 1 billion for the aftermath

Coronavirus hit, Airbnb raises $ 1 billion for the aftermath

Coronavirus hit, Airbnb raises $ 1 billion for the aftermath

The Airbnb housing reservation platform, hit hard by the prolonged confinement of half of humanity, announced Monday that it has raised $ 1 billion.

The San Francisco-based company said it had obtained the debt and equity funds from Silver Lake and Sixth Street Partners. “These new resources will support Airbnb’s work to invest for the long term in its host community,” said the company.

Before the pandemic, Airbnb had planned to go public in 2020 at an estimated value of up to $ 35 billion. In its press release, the platform does not give details on the financial impact of the crisis, but defends its history and its potential.

She recalls being born “during the great recession of 2008” and is betting on a rebound when the confined people will be able to move again. “The desire for connections and travel is a foolproof human truth, which will emerge stronger from this period of separation,” said Brian Chesky, co-founder of Airbnb.

Wave of cancellations

This fundraising must in particular be used to invest in the development of the offer of long-term stays, for students or employees on the move, for example.

“While the current environment is clearly complicated for the hospitality industry (…), Airbnb’s diverse, global and resilient business model is uniquely positioned to thrive when the world recovers and we can all benefit from it. new, “said Egon Durban, co-CEO of Silver Lake.

Of the billion raised, 5 million will go into the support fund for “super hosts”, hardworking and highly rated renters, who need help paying their rent or paying off their loan.

Last week the platform also indicated that it would release $ 250 million to mitigate the financial losses of “hosts” who rented their accommodation through its platform and who were faced with a wave of cancellations.


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