Didi Chuxing valued at $25B after latest funding round - Mobile World Live

Didi Chuxing valued at $25B after latest funding round

16 JUN 2016

Chinese car-hailing app Didi Chuxing, which has been on a fundraising frenzy over the past few months, said it has raised a total of $7.3 billion in equity and debt that values the firm at an estimated $25 billion.

Didi, China’s most popular taxi-hailing service, closed a funding round that attracted $4.5 billion in investments, including $1 billion from Apple and $600 million from China Life Insurance. It also lined up a $2.5 billion debt package from China Merchants Bank and a long-term borrowing commitment of $305 million from China Life.

Didi, which reportedly now has $10.5 billion in cash, has been boosting its funding as it faces intense competition from US-based Uber, which has been expanding aggressively in China and across Asia Pacific. In early June Uber received $3.5 billion from the Public Investment Fund of Saudi Arabia, the biggest investment it has received to date.

Uber recently said its market share in China has jumped from just 1 per cent to nearly 30 per cent over the past year or so, while its financial outlay per trip has dropped 75-80 per cent. It has been ramping up its operations in China since early January when a group of Chinese investors put nearly $2 billion into Uber. That move came shortly after four ride-hailing services — Didi, US-based Lyft, India’s Ola and Southeast Asia’s Grab – agreed to partner to scale up their services to compete against Uber.

Formerly known as Didi Kuaidi, the Chinese firm claims it completes more than 11 million rides a day, serving close to 300 million users in more than 400 Chinese cities.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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