Good move by Airbnb!

Airbnb’s investors & its funding

Unlike other big startups like Uber and Lyft, Airbnb doesn’t have to pour out money to make money.  Freshly, Aribnb has raised $1 billion in debt financing from a bunch of major banks such as J.P. Morgan, Citigroup, Bank of America and Morgan Stanley. Brain Chesky is the co-founder and CEO of Airbnb.

Last year, Airbnb was valued at $25.5 billion in a $1.5 billion round of funding.

Why raising funds in debt financing?

Now, the major question arises is why Airbnb has raised money when it doesn’t need it. Touchwood! Airbnb is doing quite well, and it looks more stable and lucrative than other large unicorns like Palantir or Uber. It is raising money whenever they can. Gradually, Airbnb plans to go public. Till that time, it has a funding of $2 billion that will help in its expansion.

Future plans of Airbnb

Airbnb plans to allow users to book other travel services like guided tours, restaurant reservations, etc. With this, a new revenue stream will generate that would help in the development process by the end of this year.

When you talk about Airbnb’s competitors, you may find none in the list.  The only business issue it faces is the political hurdles, which is likely to be overcome in the coming few years. Bloomberg reports that Airbnb has lost less than $250 million since launching in 2008, and that it generated about $1 billion in revenue last year.

Takeaways:-

• Recently, Aribnb has raised $1 billion in debt financing from a bunch of major banks such as J.P. Morgan, Citigroup, Bank of America and Morgan Stanley.
• Airbnb is doing quite well, and it looks more stable and lucrative than other large unicorns like Palantir or Uber.
• It is raising money whenever they can like other big startups.
• Airbnb plans to allow users to book other travel services like guided tours, restaurant reservations, etc. to generate a new revenue stream for boosting the development process by 2016 end.