Founded in 2012 and headquartered in Beijing, Xiaozhu boasts 10 million active users and more than 100,000 listings in 301 cities across China. It’s not the only company looking to take the successful Airbnb model and apply it to the booming Chinese market. Beijing-based competitor Tujia.com also offers a platform for short-term rentals. It too is VC-backed, most recently raising a $300 million funding in August 2015 at a reported $1 billion valuation.
Airbnb isn't exactly staying on the sidelines as these local startups scale. Last summer, the company struck partnerships with Sequoia China and China Broadband Capital to "navigate the China market and create a localized presence," as well as recruit a CEO for Airbnb China. Airbnb also counts Chinese investment firms Hillhouse Capital, Horizon Ventures and GGV Capital among its investors. Its latest valuation is $30 billion.