Uber Technologies Inc. has closed a new round of funding valuing the five-year-old ride-hailing company at close to $ 51 billion, according to people familiar with the matter, equaling Facebook Inc.’s record for a private venture-backed startup.
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Uber raised close to US$1 billion in the round, bringing its total funding to more than US$5 billion, WSJ reported on Friday, citing one of the people.
Tony Imperati, a spokesman for Redmond, Washington-based Microsoft, declined to comment.
With the infusion of fresh capital, Uber would expand operations in new markets such as China, India and Southeast Asia which are experiencing urban boom that requires taxi services and vehicle rentals.
Although an impressive sum, the new funding round is far from Uber’s largest.
Until now, Facebook was the only startup to have a billion valuation before going public. Meanwhile, in June, Uber acquired Microsoft’s Bing Maps street mapping technology and hired 100 of its workers.
It’s odd that Microsoft would make such a big late-stage investment in a company like Uber, which falls well outside of its recent focus on user productivity.
Uber confirmed this week it plans to invest $1 billion for expansion in India, as it seeks to overcome problems after rape allegations against one of its drivers in that country.
Uber also has held talks with investors to raise funds for UberChina, a separate unit of the business funded by local investors.
The Wall Street Journal notes that Uber “hasn’t publicly discussed plans for an initial public offering”, though it has taken other steps that suggest it may be preparing to do so.
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Uber carries the loftiest start-up valuation in an already frothy tech economy, beating out room rental company Airbnb, which is valued at $25 billion, and Snapchat at roughly $15 billion.
