Amid the stiff competition, Didi Kuaidi manages to score an investment from the country's sovereign-wealth fund, the China Investment Corporation.
Didi Kuaidi has been competing with its U.S. rival, Uber Technologies, in dominating the industry as China's top ride-hailing app. However, the battle has escalated when the fundraising for Didi Kuaidi had its first closing in June with a $2 billion investment, valuing the Chinese mobile app at $15 billion.
Bearing the imprimatur of China's government, a lot of companies aim to secure an investment from China Investment Corp. (CIC).
CIC rarely supports technology companies, but it did invest in Alibaba Group Holding Ltd. back in 2012, which enabled the Chinese e-commerce leader to buy back its shares from Yahoo Inc.
The fundraising is one of Didi Kuaidi's initiatives toward its goal of attracting both global and local investors from its competitor Uber.
With Uber raising nearly $1 billion investments from various shareholders, including Microsoft Corp., the international ride-hailing app has reached a value close to $51 billion, insiders said. The fundraising meant for worldwide operations made Uber the most valuable startup in the globe. It even surpassed China's smartphone manufacturer, Xiaomi Corp.
Didi Kuaidi was created from the $6 billion merger of Kuaidi Dache and Didi Dache, the rivals in taxi-hailing apps. In February, Didi Kuaidi has become one of the country's trending startups.
Supported by two of China's most influential Internet companies, Tencent Holdings Ltd. and Alibaba, Didi Kuaidi's acquisition of CIC as an investor gives it a strong backer with much bigger funds than Alibaba and Tencent.
Over $740 billion worth of assets were managed by CIC at the end of 2014. It holds funds for various industries, including some of the country's large financial institutions and an expanded portfolio of overseas investments.
CIC sets funds with external managers and has made big bets on Morgan Stanley and Blackstone Group LP--financial giants in the U.S. Its overseas portfolio has reached a 5.7-percent return since its launch in Sept. 2007 up to the end of 2014.