News Mar 10, 2017 09:06 AM EST

Airbnb closes $1 billion round of investment funding making it second most valuable start-up in US

By April Kirstin Chua

Airbnb raises more than $1 billion of investment funding in a deal, according to sources close to the home company. The round of funding was confirmed in an SEC filing dropped on Thursday that makes the company now worth approximately $31 billion.

The San Francisco-based firm offered not to comment further on how it would use the investment funding, instead it expressed its intention to expand operations globally. Airbnb launched in 2008 and currently operates in 65,000 cities worldwide. The concept is to let people rent out their properties at cheap prices as compared to hotels and traditional Breakfasts and Bed.

Reports said Airbnb closed roughly an additional $450 million as part of its series of investment funding that makes this round nearly twice as much as it stood last fall. The total amount raised was $1,003,312,065, according to the filing. It made its first profit in the second half of 2016 and will continue to be profitable in the next years.

A source within the company said that it doesn't plan to go public soon and list its shares on the stock market in the near future. Airbnb has since diversified and is offering new services that include tailor-made city tours and exclusive experiences with local experts. On the downside, the company also faced criticisms over claims it is driving up rents and contributing to housing shortages in some cities.

Last December, Airbnb said it would prevent hosts in London from renting their homes for more than 90 days per year without official consent. The move came after it faced pressure from MPs. Tougher regulations were also implemented in New York, Berlin and Barcelona. Meanwhile, it cashed at a $30 billion valuation.

With the results, Airbnb is the second most valuable start-up company in the US just behind Uber. It is enjoying an operational flexibility thanks to a stronger balance sheet.

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