Simply weeks after its final funding, Airbnb is taking the lead on funding one other firm that enhances its house rental service. This time round, Airbnb’s funding will assist gasoline the expansion of flats particularly designed for vacationers.
Lyric stated Wednesday that it had raised $150 million in funding, with Airbnb because the lead investor. Lyric, based mostly in San Francisco, plans to make use of the cash to assist develop its footprint past the 13 U.S. cities by which it at present operates.
Airbnb’s funding comes amid hypothesis that it’ll file for a blockbuster preliminary public providing later this 12 months. The corporate has change into one of many dominant gamers in house leases for vacationers with a personal valuation of $38 billion.
Airbnb’s Collection B funding of Lyric follows a $100 million to $200 million funding in Indian lodge chain OYO two weeks in the past. Earlier this 12 months, Airbnb additionally backed co-working workplace startup The Wing and hospitality know-how agency Resy. Moreover, in 2018, Airbnb funded China-based house rental software program firm Metropolis Dwelling.
Airbnb’s funding in Lyric, in some methods, helps its personal enterprise. Lyric leases total flooring of condo buildings, designs the areas for vacationers, after which lists them by itself website and on different websites like Airbnb.
Lyric, based in 2014, has lengthy had ties with Airbnb. Lyric CEO Andrew Kitchell rented his condo by Airbnb throughout Airbnb’s first 12 months as a startup. Kitchell even as soon as hosted Airbnb CEO Brian Chesky at his house.
The connection between Lyric and Airbnb grew over time. Kitchell stated that Lyric offers Airbnb with dependable stock that follows metropolis rules, “so [Airbnb’s] funding in us makes lots of sense.”
Airbnb declined to remark about its funding. As a substitute, in a press release, it praised Lyric, citing its know-how and its ability in designing the interiors of its flats.
Lyric markets itself as combining the skilled administration of a lodge with the native really feel of staying at somebody’s house. It says it has hosted “tens of 1000’s” of visitors at greater than 400 listings.
The corporate is working with actual property builders, a few of which served as traders within the newest funding spherical, to create new flats collectively. Different traders embrace Tishman Speyer, RXR Realty, and Apparent Ventures, the funding fund run by Twitter co-founder Evan Williams.
Lyric didn’t disclose any monetary particulars about its enterprise or its valuation within the newest funding spherical. In whole, the corporate says it has raised $185 million.
In the meantime, Airbnb continues to give attention to increasing its attain, together with into transportation and by buying last-minute lodge room app HotelTonight earlier this 12 months.