China taxi app operator Didi Kuaidi raises record-breaking $2b
Chinese mobile ride-hailing app operator Didi Kuaidi has raised $2 billion in a round including new investors Ping An Ventures and Capital International Private Equity Fund. The transaction is understood to be the largest ever fundraising by a private internet start-up globally.
Existing stakeholders, including Alibaba Group, Tencent Holdings, Temasek Holdings and Coatue Management, also participated, according to a statement.
The company - which formed out of a merger between Didi Dache and Kuaidi Dache in February - may raise a few hundred million dollars more before the final closing in the coming months due to increasing interest from global investors. The latest round, which took only two weeks, reportedly valued the Chinese start-up at about $15 billion. The company's cash reserve will grow to $3.5 billion after the fundraising.
China's taxi-booking space is dominated by Didi Dache and Kuaidi Dache, the two entities still operate independently under separate brands but they combine resources and personnel. They have expanded into car-pooling, car rental, designated driver services, as well as private car booking spaces, offering rides in Audi and Mercedes-Benz vehicles to high-end customers.
In May, Sina Corporation's social media platform Weibo Corporation invested $142 million in Didi Kuaidi.
This latest round of funding came after Uber said it would spend more than $1 billion this year for its China expansion. Uber also now provides a variety of services in China. Earlier this month, Ucar, a China-based mobile chauffeured car service provider launched by car hire firm China Auto Rental (CAR), raised $250 million with participation from Warburg Pincus and Legend Capital.
Didi Kuaidi aims to build an integrated transportation platform, penetrating its services in the automotive industry including logistics, insurance and mapping technology. The company plans to use the fresh capital to strength its market leading position, upgrade technology and enhance users' experience, Qing Lu, the group's CEO, told local media.
China Renaissance acted as joint financial advisor on Didi Kuaidi's latest round.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.