- Sonder said it has closed a $210 million Series D funding round. This brings the firm’s total valuation north of $1 billion, with $400 million raised.
- Airbnb’s former CFO, Laurence Tosi, is joining Sonder’s board. Tosi left Airbnb in 2018 after reports of internal clashes with CEO Brian Chesky.
- The company said it quadrupled its rentable space since last year and is projecting $400 million in revenue this year, up four-fold from 2018.
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Short-term apartment rental company Sonder said on Thursday it closed a $210 million Series D funding round that brought its valuation north of $1 billion.
Fundraising now totals $400 million, and the latest round was led by new investors Valor Equity Partners, Westcap, and Tao Capital Partners, which is co-founded by Nicholas Pritzker, whose family built the Hyatt hotel chain. Fidelity Investments, Atreides Capital, ARod Corp, Spark Capital and Greenoaks Capital also participated.
Sonder said it now has 8,500 rentable spaces in 20 cities, up from 2,200 in August 2018 in 12 cities.
The company also announced a forthcoming $15 million investment with select developers who will work with Sonder on new deals in undisclosed cities. Sonder is projecting $400 million in revenue for 2019, four times its 2018 figures.
Sonder offers apartment-style hotel rentals, and usually purchases units directly from building owners or developers, but will also lease properties. It is the leader in this hybrid space, with competitors like Airbnb-funded Lyric and Marriott’s Homemaker.
Sonder will also be adding WestCap founder and former Airbnb CFO, Laurence Tosi, to its board. Tosi left Airbnb in 2018 after reports of internal clashes with CEO Brian Chesky.
Airbnb, now 11 years old, is contemplating an IPO, though the timing is uncertain.The company is valued around $31 billion, but has faced legal issues related to local rules around short-term rentals.
Sonder has been able to zone some of their rentals as hotels so that they can provide legal short-term rentals, The Real Deal reported.