Building the next generation hospitality brand with $225 million in new funding
At Sonder, we’ve been working towards a distinct vision of the future of hospitality — one that provides a unique jaw-dropping experience, accessible to everyone, and doesn’t sacrifice quality for character.
Sonder has come a long way from the basement where it was founded five years ago. Today, a Sonder could be an ivy-clad townhome in Rome, a penthouse in London, a cozy studio in New York or a restored historic property in Philly or Chicago. Last year, we tripled our number of signed units and now have 8,500 spaces in over 20 cities around the world. And the growth hasn’t stopped there; in Q2 alone we added over 3,000 units to our portfolio. Now, we’re projecting a $400 million revenue run rate by year’s end, four times that of last year, and have cut the cost of onboarding a space in half.
All of that hard work and expansion has led us to today. We’re thrilled to share that Sonder has closed a $210 million Series D, led by Valor Equity Partners, WestCap and Nicholas Pritzker (through Tao Capital Partners) with a valuation of over $1BN. Over the coming weeks, we’ll add an additional $15M in investment from select developers who are partnering with Sonder on new deals in cities all over the world. This new capital, $225M in total, will power our vision and bring us closer than ever before to making exceptional travel experiences available to everyone. As part of this, Sonder plans to open a second global headquarters in Canada and hire several hundred engineers, designers, finance and operations experts through next year.
This has been made possible thanks to our wonderful returning investors Greenoaks, Spark Capital, Greylock, Structure and Inovia Capital, as well as others investing for the first time including Fidelity, Gavin Baker’s Atreides Management and ARod Corp in addition to our leads. We also wouldn’t be where we are today without the continued support and dedication of our passionate team — a team united by a shared obsession to create the best experience possible for our guests and for each other. We’re grateful to everyone who has been working so hard alongside us every day and to everyone who will eventually join us on this mission. Thank you.
The future of hospitality will be dynamic. It will demand flexibility. And that’s what our diverse, unique and adventure-seeking world is like too. That’s why, while our spaces will continue to take on new forms and expand to exciting neighborhoods around the world, a Sonder will always be unforgettable. We can’t wait for you all to experience one for yourselves.