Uber traces data hack perpetrator back to rival Lyft CTO Chris Lambert. (Photo : Reuters)
As a leading investor in Uber, Chinese fund manager Hillhouse Capital Group is giving a significant backup to the U.S.-based ride-booking firm. Uber is reportedly gearing up for an initial public offering.
Hillhouse Capital's investment involves the purchasing of bonds, which convert shares at a discount to Uber's IPO price, people familiar with the deal stated.
While one of them said that the investment could reach a figure as high as $1 billion, basing from discussions with Uber's investors, another noted that the final worth could only be hundreds of millions of dollars.
Despite the size of the deal, industry experts regard Uber's funding round as a strong signal that the firm is establishing groundwork for an upcoming IPO.
However, the agreement has been earning some concerns, as Hillhouse Capital is also an investor to Uber's rival and China's current ride-sharing app leader Didi Kuaidi.
Uber has been rapidly expanding in the country, as it sees China's lucrative market as a priority platform for growth. The firm, which has already partnered with a number of Chinese firms such as Baidu Inc., is now considered as a serious challenger to Didi Kuaidi.
The U.S. firm has also pledged to allot $1 billion in ramping up its efforts in the country for this year. It furthermore launched a separate fundraising round solely dedicated to its China operations.
Meanwhile, Beijing-based Hillhouse Capital is one of Asia's largest fund managers, with assets as large as over $20 billion. It is also known as one of China's savviest technology investors.
Earlier this year, the Chinese firm was able to raise $2.2 billion worth of fund, which will be used as an investment to private market deals.
