Chinese Ride Hailing Service Didi Chuxing Raised Massive USD$7.3B Funding
Chinese Ride Hailing Service, Didi Chuxing, Uber’s biggest rival, has reportedly raised a staggering USD $7.3 Billion from a host of powerful investors including Apple Inc as it completes with Uber in its home country.
Investors in the latest financing round include Apple Inc and China Life Insurance Co, Didi Chuxing said.
Didi Chuxing, China’s biggest ride-sharing company has closed a massive $4.5 billion fundraising round. This round includes Apple $1 Billion infusion into the Uber rival recently. In addition, the company has also secured a $2.5 billion debt package from China Merchants Bank Co.
Chinese Ride Hailing Service Didi Chuxing was founded by Cheng Wei in September 1, 2012 in Beijing, China. This company was earlier known as Didi Kuaidi. Didi Chuxing is the world’s largest mobile transportation platform, offering a full range of commuting options to 400 cities in China.
Didi Chuxing announced raising of a $600 million round from insurances firm, China Life. The round values the company at more than $25 billion.
On the other hand, Uber has hired Morgan Stanley and Barclays PLC to sell a so-called leveraged loan of $1 billion to $2 billion to institutional investors in the coming weeks. The same was informed to WSJ by sources privy to the matter.
China’s ride-hailing industry has grown rapidly, with competitors spending heavily to subsidize rides to capture market share.
Didi Chuxing, now has total funds well above the sum of $10 billion to fend off Uber and fuel expansion. And do note, while Uber is raising money for global expansion, Didi’s current focus is China — not that it might not increase its scope in coming years.
In September, the company and Lyft of the United States agreed to link their services to allow travellers to use them in each other’s markets. In December, their alliance added India’s Ola and Southeast Asia’s GrabTaxi.
Uber had recently raised $3.5 billion in funding from Saudi Arabia’s Public Investment Fund. The massive cash infusion is the largest investment the ride-hailing start-up has received to date from a single investor, and holds the company’s valuation steady at $62.5 billion.
Early this year, Uber raised a sum of $200 million from Russian billionaire Mikhail Fridman’s investment company LetterOne. Uber China subdivision raised almost $2 billion from a number of Chinese firms. Last year, Uber, raised $2.1 billion in a round of funding. The round was led by Tiger Global Management and T. Rowe Price. The startup has raised more than $10 billion in equity and debt.