The fundraising war has intensified between the two taxi-hailing rivals – USA’s Uber and China’s Didi Chuxing. Didi Chuxing, Uber’s biggest rival, has reportedly raised a staggering $7 Billion from a host of powerful investors including Apple Inc as it completes with Uber in its home country.
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.
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.
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 oncrease its scope in coming years.
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.