Chinese ride-sharing company Didi says that it is now ready to take on Uber after raising $7.3 billion in funds. (Photo : Twitter)
Chinese ride-sharing company Didi Chuxing is set to take its rivalry with global giant Uber on a new level, as the latter has reportedly gathered more than $7 billion in its latest fund-raising run.
According to the company, they have managed to close more than $4.5 billion in its recent fundraising round. Additionally, it has secured a syndicated loan worth $2.5 billion, which was provided by the China Merchant Bank Co., The Wall Street Journal reported.
Didi also secured several smaller loans, including $300 million provided by insurance firm China Life.
The new funds bring Didi's total value to more than $28 billion. The company also reported that it now has $10.5 billion in disposable cash.
Didi said that it plans to use the money to invest in big data research, as well as improving their services, particularly in the area of rider and driver experience.
Uber currently has a value of $62.5 billion. The San Francisco-based company has also reportedly secured $3.5 billion from the Saudi Arabian sovereign wealth fund. It also announced that it has hired Stanley Morgan and Barclays PLC to attract more investors through the selling of $1 billion to $2 billion worth of leveraged loans.
However, more than the influx of funds, Didi proudly announced that it has gained the backing of major domestic companies Alibaba and Tencent, as well as global technology giant Apple.
Company founder and CEO Cheng Wei welcomed the development, adding that the arrival of these big investors reflects growing confidence in Didi's business potential, CNBC reported.
Didi, formerly Didi Kuaidi, was formed in 2015 by the merger of ride-sharing companies Didi Dache and Kuaidi Dache.
