The funding values the Montreal-founded Airbnb rival at US$1.3 billion. Fidelity, Westcap Group and Inovia Capital led the round. Sonder plans to raise additional funds in the coming weeks, bringing the round to US$200 million. (The Logic)

Talking point: The financing serves as a bet from investors that a rebound is in the cards. Like other home-rental platforms, Sonder saw its occupancy rate drop by almost half at the start of the pandemic, forcing it to cut prices, unload underperforming properties and lay off a third of its staff. According to the company, its bookings are back up to pre-pandemic levels. Sonder may have an edge over its top competitor Airbnb—which has aggressively cut spending in recent months amid a dropoff in bookings—in that it leases, furnishes and manages its units itself, giving it more control and predictability of its business. The funding round comes less than a year after the company’s Series D, in which it raised US$210 million at a valuation of just over US$1 billion.