A group led by private-equity firm TPG has finalized an agreement to invest $450 million in Airbnb, valuing the home-rental site at $10 billion, according to people familiar with the situation.
The funding round makes Airbnb one of the world’s most valuable startups, matching investors’ price tags for file-storage company Dropbox and Chinese smartphone maker Xiaomi.
Airbnb, which lets people rent their homes to travelers, now has a higher valiuation than large publicly traded hotel chains Wyndham Worldwide and Hyatt Hotels.
The investor group also includes investment firm Dragoneer Investment Group, mutual fund T. Rowe Price and venture-capital firm Sequoia Capital.
TPG Growth, the buyout firm’s middle-market and growth-equity arm, and Dragoneer are expected to invest roughly $75 million apiece in Airbnb as part of the deal, the people said. Sequoia, an earlier Airbnb investor, is expected to invest about $85 million, they said.