Investors in Didi Kuaidi Joint Co., China’s homegrown competitor to Uber Technologies Inc., have pushed the ride-sharing company’s valuation to more than US$25 billion.
Beijing-based Didi Kuaidi is close to completing its latest funding round to raise more than US$1.5 billion at a valuation of over US$25 billion, The Wall Street Journal reported, citing unnamed sources.
Didi Kuaidi’s biggest existing backers, social network giant Tencent Holdings Ltd. (00700.HK) and online shopping behemoth Alibaba Group Holding Ltd., are participating in the latest round, the report said.
While many startups worldwide, including some in Silicon Valley, have had difficulty raising money amid a slowdown in the global economy, Didi Kuaidi has been an exception.
Its valuation has soared from just US$6 billion in February 2015, when it was formed from the combination of two competing taxi-hailing companies.
Investors are betting that the company will be able to eventually turn a profit after attracting more Chinese riders to its service.
In China’s fast-growing market for ride sharing, Didi Kuaidi and UberChina are locked in a fierce battle to attract riders and investors.
Both companies are providing huge subsidies to drivers and riders to sign up for their services.
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