Quick Take: Valuation of Shared-Economy Company Tujia Passes $1.5 Billion

The valuation of Tujia, a shared-economy specialist often called China’s equivalent of Airbnb, has passed $1.5 billion after its latest round of fundraising.

Tujia, which will turn 6 on Dec. 1, has recently raised $300 million, CEO Luo Jun said in a statement. Funds will be spent on “standardizing aspects of our alternative travel accommodations such as linen washing, cleanliness, and smart capabilities,” and to “further invest in the domestic high-end real estate market and in foreign markets,” Luo said.

Lead investors are Ctrip and All-Stars Investment, while other investors include China Renaissance’s New Economy Fund, Glade Brook Capital, and G Street Capital, the statement added.

Tujia’s valuation, despite the added war chest, is still a fraction of Airbnb, which was valued at $31 billion at its last fundraising round in March.

The Chinese contender of Airbnb, Tujia has grown to cover 345 domestic destinations and 1,037 foreign destinations, with over 650,000 online listings. It has integrated three accommodation booking platforms: Ctrip Homestay, Qunar Homestay and Mayi.com.

Tujia has also been active in expanding beyond its home market, leveraging overseas property owned by Chinese buyers to fuel the drive.

Airbnb and Tujia make money by acting as middlemen to bring together travelers and owners of vacant rooms and properties that can be used as lodging for short-term stays.

Contact reporter Aries Poon (ariespoon@caixin.com)