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TechAirbnb

Airbnb to Buy a Startup That Does Background Checks

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Jonathan Vanian
Jonathan Vanian
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By
Jonathan Vanian
Jonathan Vanian
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June 16, 2017, 4:58 PM ET
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Airbnb is taking some steps to weed out troublemakers plaguing its home-rental service.

The company is buying Trooly, a small startup that specializes in technology that helps conduct background checks, Bloomberg News reported on Friday. An Airbnb spokesperson confirmed the acquisition to Fortune in an email, but he declined to disclose the price or the number of workers involved. According to Trooly’s website, it has 16 employees.

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“We look forward to welcoming the Trooly team to Airbnb in the coming weeks,” the Airbnb spokesperson said. “We’ll continue working together to better facilitate trust between strangers on, off and across the platform – supporting Airbnb’s overall strategy to create a world where anyone can belong anywhere.”

Trooly, founded in 2014, raised $10 million in funding in 2016, according to venture capital tracking site Crunchbase.

Trooly’s technology scours search engines, online public records, and social messaging services for information about people. It then tries to determine people’s potential to be troublemakers, and displays the information to customers on a digital scorecard, according to its website. The technology is supposed to be an alternative to conventional background checks and credit score services that businesses typically use to screen employees before hiring.

Airbnb, which has a reported valuation of $25.5 billion, has been a Trooly customer since 2015, according to the Bloomberg News report.

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In April, Airbnb said it banned a host on its service after it learned the person refused to rent to a law student at University of California, Los Angeles because of her Asian background.

“I wouldn’t rent to u if u were the last person on earth,” the host’s message reportedly said. “One word says it all: Asian.”

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By Jonathan Vanian
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Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

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