One of Airbnb’s biggest Chinese rivals, Beijing-based Xiaozhu.com, is in talks with Singapore’s sovereign wealth fund and other investors for more than USD 200 million in new funding to take on the American home-sharing giant, according to people familiar with the deal.
It’s now targeting a valuation greater than the USD 1 billion it hit in November, but those figures could change as discussions are still underway, said the people, who asked not to be identified talking about a private deal. Singapore’s GIC Pte is considering an investment in a round that’s already oversubscribed, they said.
Xiaozhu’s business model hews closest to Airbnb’s. Beyond traditional accommodation, it also offers services that help homeowners improve the look and feel of property for would-be renters. Its other existing investors include Yunfeng Capital, which is backed by Alibaba co-founder Jack Ma, Legend Capital, Morningside Venture Capital, MSA Capital and Capital Today.
GIC had no immediate comment, while Xiaozhu declined official comment.
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