Short-term rental startup Sonder is nearing a deal to go public through a SPAC with Metropoulos II at a valuation of more than $2.5 billion, Bloomberg first reported. The Blank-check company is led by chairman Dean Metropoulos and Chief Executive Officer Alec Gores, raised $450 million in a January initial public offering.
- Worth Noting: This comes months after competitors Stay Alfred and Domio folded during the pandemic. While others were struggling to survive, Sonder beefed up its C-suite in January. The company promoted Sanjay Banker to President and hired Satyen Pandya as its first Chief Technology Officer.
- What they do: The company refurbishes apartment rentals into short-term, hotel-like units. It subsequently lists them on its website, as well as with Airbnb and Expedia Group’s Vrbo.
- First NYC Location set to debut: Sonder plans to reopen the Flatiron Hotel at Premier Equities’ 9 West 26th Street later this month. The hotel will be its first in New York City — a year and a half after the startup agreed to lease it. Despite the delay, caused in part by interior renovations being halted for six months during the pandemic, there was no rush to open its doors when the city was completely shut down.
- Flashback: Fundraising prowess: Sonder closed a $1225 million round of funding in June 2020, which increased the company’s total valuation to $1.3 billion. The Series E round, which was led by Fidelity Funds, Westcap, and Inovia Capital, bringing Sonder’s total venture funding to-date over $560 million. [Bloomberg+CO+TRD]