SAN FRANCISCO—Sonder has closed $170 million in new funding, increasing the company’s valuation to $1.3 billion. In the coming weeks, Sonder expects to raise additional capital from new and returning investors that will bring the total round to around $200 million.
The Series E round, which was led by Fidelity Funds, Westcap and Inovia Capital, brings Sonder’s total venture funding to-date over $560 million. Additional investors in the round include Spark Capital, Greenoaks, Valor Equity, Greylock, Gavin Baker’s Atreides Capital, Tao Capital (Pritzker family) and Lennar.
This fundraise and valuation increase comes after the most severe downturn the hospitality industry has ever faced. While the company expects the recovery from the pandemic to be long and difficult, with this latest round of funding, it noted that Sonder is well-positioned to help lead a reinvention of the travel industry in the months and years ahead.
Sonder reports that it will use this new capital to continue scaling its business thoughtfully and responsibly in the wake of the pandemic. Sonder’s self-contained spaces and self-service solutions—including digital check-in, keyless entry, professional cleaning and no lines or crowded lobbies—are the foundation of what guests now demand from a hospitality company. According to the company, this is a major reason why Sonder has been able to maintain a 75% occupancy rate across its properties despite the pandemic.