China-based Tujia.com, an online platform for discovering vacation rentals, has raised $300 million at a valuation of over $1.5 billion.
The investment round was led by Ctrip and All-Stars Investment. Besides, China Renaissance’s New Economy Fund, Glade Brook Capital, and G Street Capital also participated in the funding round.
Tujia aims to divert the funds into improving and standardize the firm’s accommodation, and further invest in the domestic high-end real estate market and in foreign markets.
The funding comes as the company is looking to tap growing demand from Chinese tourists for independent travel.
Tujia is in fierce competition with Airbnb, which is strengthening its presence in China and looking to tap the market of young millennials. Airbnb was valued at $30 billion last year.
Launched in 2011, Tujia had raised $300 million in 2015 from All-Stars Investment and others, then valuing the company at $1 billion. It has over 650,000 online listings in China and overseas.
Besides Tujia and Airnbnb, Xiaozhu is another platform in short-term room rental space which is quite popular in the Chinese market.
Launched in 2012, Xiaozhu has raised over $151 million in six round of funding. Morningside Ventures, Heyu Capital, Citic Capital and Bertelsmann Asia, among others are some of the investors in the company.
China’s short-term accommodation market is booming during the recent years and reached 24.3 billion yuan in 2016.