This story originally appeared on Reuters
Apartment-sharing startup Airbnb Inc has raised over $100 million in a new round of funding, a source close to the company said.
Airbnb, once a startup selling cereal, expects to achieve profitability in 2016, the source said.
Airbnb revenue doubled to $340 million in the third quarter on bookings of $2.2 billion, the source said. The company expects revenue of $900 million this year.
The round was done at the same $25.5 billion valuation as the previous funding round over the summer, indicating that unicorns, or private tech companies worth $1 billion or more, are finding it tougher to convince investors to buy shares at continuously escalating valuations.
The Wall Street Journal first reported the funding on Friday.
Priceline, Expedia and other travel companies have been facing increased pressure in their hotel bookings business from the rise of apartment-sharing startups such as Airbnb.
Unlike hotels, Airbnb does not own properties and is not responsible for services like housekeeping.
Some travelers prefer to use Airbnb not just for the cheaper price but also options such as renting an entire house, enjoying quiet neighborhoods lacking in hotels and benefiting from their host's local knowledge.
(Reporting by Anya George Tharakan and Manish Parashar in Bengaluru; Editing by Don Sebastian)
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