Airbnb Inc.'s Chinese rival Tujia is in talks to raise more than $300 million, putting pressure on the U.S. home-sharing startup less than a month after it officially debuted in the country.
Tujia Holdings is one of China's biggest platforms for property owners seeking to turn their homes into temporary lodgings. It has 400,000 listings plus another 300,000 on its low-cost platform Mayi, as well as more acquired from travel giant Ctrip.Com. By comparison, Airbnb had 80,000 properties in China as of 2016.
Zhuang Hai, Tujia's president, said the company is on track to raise at least $300 million at a valuation of more than $1 billion in as soon as a month. The business will also split, with 1,000 employees remaining on the home-sharing side of the business, while 2,000 workers will be part of Sweetome, its professionally managed property unit. Details are still subject to change because discussions with investors are still underway, he said.