”China’s Uber”, valuated at $50bn
Didi Chuxing, the largest public transport company in China’s economy, is about to become the second most valued private company in the Asian country, being valuated by investors at over $50bn.
The company is about to obtain a capital injection of $6bn from investors, including Japanese group Softbank, investment fund Silver Lake, as well as China Merchants Bank and Bank of Communications, according to Reuters. Last year, American giant Apple also invested $1bn in Did Chuxing.
With $40bn, the company’s evaluation is way over the $34bn established in 2016, when it took over Uber operations in China, with the latter backing down after losing a tough price war.
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Uber was valuated by investors at $68bn worldwide and last year it had revenue of $6,5bn, but a loss of $2,8bn as well.
At the same time, with $50bn, Didi would surpass electronics producer Xiaomi, that held the record in 2014, with an evaluation of $46bn.
On the other hand, Didi Chuxing is still under the value of Ant Financial, of $60bn. Ant Financial is an affiliated company of online retailer Alibaba and includes online payment service Alipay, which has over $450mn users in China, and that recently announced the acquisition of money transfer service MoneyGram.
Didi wants to expand on an international level and will use funds for this purpose.
The Chinese group already invested $100mn in a similar transport service in Brazil, called 99.
At the same time the company entered a series of strategic partnerships with Lyft, Uber’s American competitor, as well as travel website TripAdvisor and educational organisation Udacity.
Finally, Didi Chuxing opened last month an artificial intelligence lab in Silicon Valley, with the purpose of developing technologies for autonomous cars.
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