Didi Chuxing Not Backing Down From Uber, Raises $7B In Funding by PitchBook
Continuing the race for most well-funded startup with rival Uber, Didi Chuxing has reportedly raised $7 billion in funding, comprising $4.5 billion in equity and a $2.5 billion debt package provided by China Merchants Bank. The Chinese company is locked in a battle with Uber within the country; Uber recently secured $3.5 billion in equity financing from Saudi Arabia’s Public Investment Fund and is raising up to $2 billion in a leveraged loan. The new funding is said to value Didi at up to $28 billion, which would place it ahead of Airbnb on the most valuable private company list but well behind Uber’s $66.6 billion value. Apple made a $1 billion investment in the round.
While Uber is rumored to spend $1 billion annually in China, Didi has cemented itself as the leader in the country, with reports from May stating the company had a 99% share of the taxi-hailing market, as well as 87% of the private car, or ridesharing, market. There is also talk of Didi hitting the public markets with an IPO sometime next year, depending on how its battle against Uber moves forward.