According to reports from the Wall Street Journal and Financial Times, Brian Chesky, CEO of Airbnb home-rental service, agreed to a $1.5 billion fundraising to boost the company’s valuation to $25.5 billion.
The funds from Hillhouse Capital, General Atlantic, and Tiger Global, among others, will be used to squeeze a booming demand for the service in Asia.
If Airbnb’s funding round succeeds, it would match the biggest equity investment round for a private technology company since 2011 when Facebook raised $1.5 billion.
Financial Times points to a new fundraising strategy of the rich and famous: Last week, data analytics software company, Palantir, revealed its interest in raising hundreds of millions of dollars, which would value the company at $20 billion.
The Ridesharing app, Uber, is doing the same, looking for $1.5 billion investment that would make its valuation to $50 billion.
Uber’s Chinese rival, Didi Kuaidi, the country’s leading ride-hailing app, told shareholders it wishes to increase its $1.5 billion round. The funding would have valued the company at about $15 billion.