Since the pandemic began, Airbnb’s valuation dropped from $31 billion to $18 billion. Furthermore, the company has raised equity and debt to the tune of $1 billion from Silver Lake and Sixth Street Partners to carry the company through the crisis.
A week later, the company raised an additional $1 billion from Fidelity, T. Rowe Price, and Blackrock. While the company has managed to stay afloat, it remains to be seen how the raised equity and drop in valuation will impact the company’s plans to file this month with the SEC and launch an IPO later this year.
Regardless, Airbnb has generated tons of interest from investors as a highly profitable short-term stay provider which offers services to weary travelers in practically every corner of the globe.
As the COVID-19 pandemic begins to taper off, it will be interesting to see how quickly Airbnb and other companies within the space will recover.
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