It also declared in a statement on Wednesday the most recent funding process might still yield another “few hundred million” thanks to massive interest from global investors.
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Existing stakeholders such as Alibaba, Tencent, Temasek and Coatue Management participated in the fundraising, while Capital worldwide Private Equity Fund, Ping An Ventures, and several other globally renowned investors have invested in this round of fundraising, the company said in a statement.
“When a business model is repeatable, (…) Term details” class=”glossaryLink “>startup, Didi Kuaidi (the new name for the merger between Didi Dache and Kuaidi Dache), revealed today that it has raised a record-breaking US$2 billion in funding. Started its formal fundraising specifically for its China operation.
It is looking to raise “a further few hundred million dollars” from new investors in the coming month, it added. Uber is already valued at $50 Billion plus, and is looking to invest as much as $1 Billion to increase its market share in world’s second largest economy, a market dominated massively by Didi Kuaidi.
Didi Kuaidi stated the fundraising will carry its money reserves to $three.
The two apps claim to handle a combined 3 million taxi rides and 3 million private vehicle rides per day across China. Uber said recently that it will spend $1 billion or more in China to ramp up its services and that surely will see the competition between the two companies rise further.
Didi Kuaidi “has established clear competitive advantages through its integrated platform, technology and team”, Chief Executive Officer Cheng Wei said in the statement. Didi Kuaidi’s backers include Alibaba Group Holding Ltd. and Tencent Holdings Ltd, while Uber has entered a strategic partnership with Chinese search engine Baidu in 2014 that included an investment in Uber’s China operations.
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China’s ride-hailing market is a two-horse race between Uber and the Chinese startup. Both companies are raising fresh capital to help lure traffic to their services, which includes spending huge sums on subsidies to entice drivers and riders.
