Airbnb is honing in on a $1 billion funding round that would give the residency rental firm a total valuation of $24 billion. That valuation is two times mtravel site Expedia and $3 billion more than Marriott International.
The room rental company believes it will pull in $10 billion annually in revenue by 2020 with $3 billion in annual profits before interest, taxes, depreciation, and amortization.
Despite a rather new presence on the rental scene, Airbnb already controls nearly 1% share of the global lodging market, the company would need to increase its share to 10% in the next five years to reach its lofty goals.
In 2015, Airbnb is expected to take in $850 million in revenue with an operating loss of $150 million caused by expansion and fights with regulators over taxes and lodging laws.
The company still faces some major hurdles, New York attorney general Eric T. Schneiderman deemed nearly three-quarters of Airbnb rentals in New York City illegal, forcing the company to remove nearly 2,000 listings. The company has also faced sanctions in Berlin and San Francisco, among other locations.
Airbnb raised enough money in April 2014 to create a $10 billion valuation. If the $1 billion funding round is approved, it will place Airbnb behind only Uber in recently valuation and funding rounds.