China Life invests $600m in Didi Chuxing

The strategic investment comes from China Life Investment Holding, the insurer's alternative investment unit. It comprises an equity commitment of $300 million plus RMB2 billion ($304 million) in long-term debt, Didi Chuxing said in a statement cited by local media. 

The investment follows a $1 billion injection from Apple and a further $400 million from Alibaba and its financial affiliate Ant Financial last month. Didi is in the process of raising a new round said to be worth $3.5 billion - including the above disclosed investments - at a valuation of more than $25 billion.

As part of the agreement, China Life will help Didi build a mobile financial ecosystem focusing on insurance products, integrated financial services and expansion of the enterprise car market. The two parties will also explore investment opportunities in ride-hailing related assets in China and abroad.

Junhui Wang, president of China Life Investment Holding, said the cooperation is an important step for the company as it integrates insurance products with internet players' offerings. China Life previously invested in Didi's rival Uber China, the local unit of US-based Uber Technologies. 

"The strategic partnership will bring long-term value to Didi," said Jean Liu, Didi's president. "Through leveraging China Life's resources - including capital, its brand, existing financial products and its service network - Didi could provide more flexible, reliable and rich riding experience to its customers."

Didi has a more than 87% share of the ride-hailing market in China. In terms of overseas expansion, it has forged a strategic global partnernership with India's Ola, Southeast Asia's GrabTaxi and US-based Lyft to allow each company to use the other's services.

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• Topics
• Greater China
• Expansion
• Technology
• China
• TMT
• Transportation
• China Life
• Growth capital