Didi Kuaidi closes US$3 bln funding round

September 10, 2015 08:45

A Beijing taxi driver gets ready to pick up hires using Didi Kuaidi. The Chinese ride-hailing app expects a US$4 billion war chest after the latest funding round. Photo: WSJ

Chinese ride-hailing company Didi Kuaidi Joint Co. has closed a US$3 billion funding round, the largest ever for a venture-backed startup in a single placement.

Didi Kuaidi raised an additional US$1 billion after an initial US$2 billion closing announced in July, the Wall Street Journal reports, citing a company statement.

New investors in the round include China’s US$740 billion sovereign wealth fund China Investment Corp., Capital International Private Equity Funds, and Ping An Ventures.

The fundraising is part of Didi Kuaidi’s escalating battle with Uber Technologies Inc., which is also raising money to expand in China.

Didi Kuaidi boasts the backing of two of the country’s top internet companies, Alibaba and Tencent Holdings Ltd.

Both participated in the latest fundraising.

Other existing investors that put in new funds include Singapore state investment company Temasek Holdings Pte. Ltd. and New York hedge-fund manager Coatue Management LLC.

The Chinese startup’s latest round is the largest equity funding globally in a single placement for a private tech startup, according to Dow Jones VentureSource data.

Competitor Uber Technologies Inc. collected as much as US$2.8 billion in a round earlier this year while Chinese e-commerce giant Alibaba Group Holding Ltd. raised US$1.6 billion in 2011.

Didi Kuaidi said it would have more than US$4 billion in cash reserves after the new fundraising round.

The company offers a range of services from taxi-hailing, where it has dominant market share, to carpooling.

Some of its services are available in at least 360 cities across China.

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