PropTech giant Airbnb has raised $1bn as it is dealing with a massive drop in business after COVID-19 caused huge disruptions in the travel industry.
The sharing economy home rental company netted $1bn from Silver Lake Partners and Sixth Street Partners in a combination of debt and equity securities.
The pandemic has already seen its valuation plunge from $31bn to $26bn. The company has also stopped all hiring and marketing.
Airbnb had reportedly planned to go public some time in 2020, but the impact of the global contagion could have forced the business to put these plans on halt.
Despite this, the Airbnb leadership still seemed bullish about the company’s prospects after the crisis.
“The desire to explore, connect, have new experiences, and have a comfortable place to call home are universal and enduring,” said Brian Chesky, co-founder, CEO and head of community at Airbnb. “And our commitment to create a greater sense of belonging – for everyone, everywhere – will never change.”
Both Silver Lake and Sixth Street Partners seemed to share the sentiment.
“Airbnb’s revolutionary platform has transformed how people travel, unlocking one-of-a-kind stays and experiences at scale,” said Egon Durban, co-CEO and managing partner at Silver Lake. “This was made possible by [the founders] Brian, Joe [Gebbia] and Nate [Blecharhzyk]’s inspired leadership and care for both their guest and host community.
“While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring. Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it.”
Sixth Street Partners CEO and managing partner Alan Waxman added, “Airbnb created an enormous new category, underpinned by the leading brand and technology platform, as well as a community founded on trust. The company’s achievements speak for themselves, and we are excited by the opportunities on the horizon as they continue to grow their geographic footprint, accommodations and experiences. We’re pleased to partner with this unique company as they navigate through this period focused on hosts, guests, employees, communities, and shareholders.”
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