TPG-Led Group Closes $450 Million Investment in Airbnb

A group led by private-equity firm TPG has finalized an agreement to invest $450 million in Airbnb Inc., valuing the home-rental site at $10 billion, according to people familiar with the situation.

The funding round makes Airbnb one of the world's most valuable startups, matching investors' price tags for file-storage company Dropbox Inc. and Chinese smartphone maker Xiaomi Inc. Airbnb, which lets people rent their homes to travelers, is also now valued higher than large publicly traded hotel chains Wyndham Worldwide Corp. and Hyatt Hotels Corp.

The investor group also includes investment firm Dragoneer Investment Group, mutual fund T. Rowe Price Group Inc. and venture-capital firm Sequoia Capital. TPG Growth, the buyout firm's middle-market and growth-equity arm, and Dragoneer are expected to invest roughly $75 million apiece in Airbnb as part of the deal, the people said. Sequoia, an earlier Airbnb investor, is expected to invest about $85 million, they said.

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