Uber, the ride-sharing startup added new investors including Lone Pine Capital Valiant Capital Partners and Qatar Investment Authority, according to report from Wall Street Journal based on information from people familiar with the situation.
The report indicated that the hedge funds along with the Middle East sovereign wealth fund participated in the $1.2 billion round of funding announced by Uber yesterday.
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New Enterprise Associates, one of the oldest and largest venture capital firms worldwide also acquired a stake in Uber during the latest round funding, according to the people with knowledge about the transaction. They also indicated that some of the previous investors of the startup increased their stake in the new round of fundraising.
Uber’s valuation reached $41 billion
According to the report, Uber’s bidding process on the fundraising was competitive, which lifted the company’s valuation to as much as $41 billion from $17 billion six months ago. Its valuation is considered the highest for any private startup supported venture capital firms.
Market observers noted that the new investors of Uber are the most optimistic given its current valuation. Uber needs to value its initial public offering (IPO) to more than $80 billion to allow its backers to double their investment in the company.
Uber to expand in other regions
The report indicated that Uber is seeking to expand its ride-sharing service in other regions around the world. Qatar Investment Authority is among its several foreign investors with whom Uber discussed strategic investments that could help achieve its goal of expanding internationally.
Last month, some people indicated that Uber met with investors in India and Latin America. The startup disclosed its plans to raise as much as $600 million in additional funds from strategic investors yesterday.
“We have just raised a financing round of $1.2 billion, with additional capacity remaining for strategic investments. This financing will allow Uber to make substantial investments, particularly in the Asia Pacific region,” said Uber in a blog post.
According to Uber, it will produce more than 1 million jobs next year alone in cities around the worlds. The startup emphasized that millions of people may realize that they will no longer need a car because riding with Uber will be cheaper than owning one.