(Ecofin Agency) - US company Airbnb raised 1 billion from private equity firms Silver Lake and Sixth Street Partners to cushion the impacts of the current coronavirus pandemic on the company’s activities. The details of this transaction were not disclosed but the amount is constituted of an equity contribution and loans.
The investment will make it possible to compensate certain members of Airbnb’s platform who have had their reservations canceled due to the pandemic. Airbnb undertakes, according to its internal policy, to pay at least 25% of the amount between 14 March and 31 May 2020 and plans to spend $250 million for this strategy.
Although its main markets are in Asia and the West, Airbnb has many partners in Africa, where the volume of its business was in constant evolution before the covid-19 pandemic. Main African partners are Cape Town in South Africa, Morocco, and Nigeria which concentrate a considerable number of business and leisure tourists in search of decent and affordable accommodation.
The company had planned to list on the New York Stock Exchange this year but its managers are now rejecting the idea as it will be difficult to convince the market in the current conditions. For shareholders, it will be difficult to receive a fair valuation.
In the first nine months of 2019, the company recorded a turnover of $4.6 billion, but posted a loss of $322 million, according to information reported by The Wall Street Journal.