Chinese ride-hailing service Didi Kuaidi is set to raise about $3 billion through its latest fundraising round, said two people familiar with the matter, just as funding at the Chinese unit of rival Uber Technologies reaches $1.2 billion.
The inflow of cash raises the stakes between two of the world’s most valuable startups. It also illustrates how investors are undeterred by the two companies spending heavily as they subsidise rides to gain market share, betting on China’s Internet-linked transport market becoming the world’s biggest.
Didi Kuaidi, which has the largest market share of car-hailing apps in China, in July said it raised $2 billion (roughly Rs. 13,344 crores), and that the amount may rise another “few hundred million” due to what it said was tremendous interest from global investors.
A Didi Kuaidi spokeswoman declined to comment on the latest figure on Monday.
The same day, Uber Chief Executive Travis Kalanick said Uber China has received $1.2 billion (roughly Rs. 8,006 crores), including from previous investor Baidu, as part of ongoing fundraising. He made the comment in an interview with Chinese news website Sina.com which was confirmed by an Uber China spokeswoman.
Kalanick is due to speak in Beijing on Tuesday at the annual corporate conference of Internet search leader Baidu.
Didi Kuaidi’s $3 billion (roughly Rs. 20,016 crores) fundraising was first reported by Bloomberg News, which cited a person familiar with the matter as saying the round valued Didi Kuaidi at $16.5 billion (roughly Rs. 1,10,088 crores).
Investors in Didi Kuaidi include Baidu rivals Alibaba Group Holding and Tencent Holdings.
Other investors include sovereign wealth fund China Investment, Hillhouse Capital, Coatue Management, Singapore state investor Temasek Holdings, Capital International Private Equity Fund and Ping An Insurance Group.