Tujia raises US$300 million in latest round of financing

China's Airbnb-like service provider to use funds to "work toward optimizing the user experience"

Tujia, China’s Airbnb-like service provider, said today it raised US$300 million in the latest round of financing, which marked a record high investment in China’s sharing accommodation industry.

The leading investors in the latest round were Ctrip and All-Stars Investment, as well as China Renaissance’s New Economy Fund, Glade Brook Capital and G Street Capital. Glade Brook used to be an investor in Airbnb and Uber, demonstrating the international capital market’s confidence, Tujia said.

Tujia raised US$300 million in the latest round or round E, with its online business platform valued at over US$1.5 billion. After the previous round of financing in 2015, Tujia separated its online and offline business.

The investment will be used to “work toward optimizing the user experience by standardizing aspects of our alternative travel accommodation such as linen washing, cleanliness, and smart capabilities” and to “further invest in the domestic high-end real estate market and in foreign markets,” said Luo Jun, Tujia’s founder and CEO.

Tujia is set to tap the increase in demand for family-friendly accommodation options, as Chinese families with kids brought nearly 280 million yuan to Airbnb hosts in China and abroad in the first nine months, said Airbnb.

Since its debut in 2011, Tujia now covers 345 domestic destinations and 1,037 foreign destinations, with over 650,000 online listings. With Tujia's  home-sharing accommodation business integrated with Ctrip and Qunar Homestay services, Tujia now has more than 180 million mobile app users.

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