Didi Chuxing raises Dollars 4 billion in new equity funding

Laverne Mann
December 23, 2017

China's ride-hailing unicorn Didi Chuxing has completed its second multi-billion funding round in eight months, as the company looks to expand into several new business areas, Caixin reports.

The money is meant to support Didi in artificial intelligence capacity-building, global expansion and other new business initiatives, such as the development of new energy vehicle service networks.

"With a substantial cash reserve, DiDi plans to scale up investments in AI talent and technologies, to further build up its intelligent driving and smart transportation capabilities, and to bring more innovative and diversified transportation services to broader communities around the world".

The investment would extend Didi's valuation to $56bn.

The two companies have been in a slow-moving war for years.

Uber and Didi compete in each region of the world, including the Middle East, after the Chinese company signed a partnership with UAE-based ride-sharing firm Careem in August.

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Didi said the fundraising attracted both Chinese and worldwide investors.

Didi has also invested in Uber's rivals globally, including US-based Lyft, Brazil-based 99 and Singapore-headquartered Grab.

The deal came after the People's Bank of China, the nation's central bank, said past year that it would control the number of third-party payment licenses issued, making them highly sought-after.

Three of the five most valuable startups on the planet - Didi, smartphone maker Xiaomi and Meituan-Dianping - are now Chinese, according to data from CB Insights.

The company in April raised $5.5 billion from several investors, with Softbank providing $5 billion.

Other reports by MaliBehiribAe

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