China’s Airbnb-like Tujia raised $300 million to expand overseas

Business Insider

HONG KONG (Reuters) – Tujia, a Chinese vacation rental company similar to home rental firm Airbnb Inc, said on Monday it had raised $300 million from a group of investors to expand its business overseas, increase marketing and offer new products.

The deal values Tujia at more than $1 billion, the Chinese company added without disclosing the size of the stake the investors bought. By comparison, Airbnb, which operates around the world, is valued at $20 billion.  

Hong Kong-based All-Stars Investment Ltd, which has invested in Chinese smartphone maker Xiaomi Inc and taxi hailing app Didi Kuaidi, led the funding round.

Other investors included existing Tujia shareholders and The Ascott Ltd, a serviced residence business owned by Singapore’s CapitaLand Ltd, which will invest $50 million.

The Ascott will also form a $40 million joint venture with Tujia to operate serviced apartments in China, CapitaLand said in a separate statement. CapitaLand, Southeast Asia’s largest property developer, aims to add 6,000 new units in China by 2020, up from the 14,000 it owns there now.

China Renaissance Partners was sole financial adviser to Tujia.

(Reporting by Elzio Barreto; Editing by Edwina Gibbs)

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