Business
18:59, 21-Dec-2017
China ride-hailing firm Didi raises US$4 billion for global push
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Chinese ride-hailing firm Didi Chuxing said on Thursday that it has raised four billion US dollars in funds earmarked for international expansion and into areas such as artificial intelligence (AI), as it looks to branch out to new businesses in the face of challenges overseas and at home.
The fundraising values Didi at over 50 billion US dollars and includes Abu Dhabi state fund Mubadala Capital, two people familiar with the deal told Reuters. Mubadala did not respond to a request for comment.
Existing investor SoftBank Group Corp. also participated in the latest funding, a spokesman for the Japanese firm confirmed, declining to specify the size of its investment. In April, Softbank led a 5.5 billion US dollar round, dedicated to bolster the company’s artificial intelligence and self-driving efforts as well as its international investments.
“With a substantial cash reserve, Didi plans to scale up investments in AI talent and technologies,” Didi said in a statement. The funds would also help Didi “bring more innovative and diversified transportation services to broader communities around the world.”
Didi has expanded overseas rapidly in the past year since sealing its dominance in China with the purchase of Uber’s local business in 2016, ending a cash-burning subsidy war that cost the US firm roughly two billion US dollars.
Earlier this month reports said that Didi was planning to enter Mexico next year, in what would be its first overseas operation not managed through a local partner.
On Wednesday, Didi announced it was looking at entering the Taiwan market, and had authorized a franchisee operator to do research there on its behalf.
Didi has also invested in several of Uber’s rivals globally, including US-based Lyft, Brazil’s 99, India’s Ola, Singapore’s Grab, Estonia’s Taxify and Careem in the Middle East.
Besides SoftBank, investors in Didi’s previous funding rounds included Apple Inc and Alibaba Group Holding Ltd.
Source(s): Reuters