Didi Chuxing Struts Through Funding With $7 Billion
Photo courtesy of Thinkstock
DiDi Chuxing is pretty good at fundraising.
The Chinese ride-hailing service is taking even the best Girl Scout selling cookies to task.
No amount of Thin Mints would garner a round that now leaves DiDi Chuxing $7 billion richer.
The Wall Street Journal reports that’s how much the company was able to raise in this latest round, which includes a $1 billion hat tip from the likes of Apple.
In total, that puts DiDi at more than $25 billion in valuation, which makes it rather healthy to continue to dominate one of the biggest markets in the world.
Back in May we reported that Apple dropped a sizable sum on DiDi, which is a bit of a change of course for the purveyors of smartphones and desktops.
As was offered by many at the time, the move was an intelligent one that allows the company to wiggle its way into China’s marketplace.
The wisdom has paid off, because if you are going to get a piggyback ride into an industry it’s best to do so aboard a company with sturdy legs.
Obviously, the most crucial takeaway from the news is how well positioned DiDi is to battle the onslaught of Uber and its incessant International push.
The WSJ reports this latest push gives the Chinese company a mountain of funds for the fight: “Didi will now have more than $10 billion in cash on hand following the new fundraising round through equity and debt, according to one of the people.”
Earlier this year, reports suggested that Uber had a completely different outlook on China’s transportation industry.
CNBC put losses at $1 billion per year to operate in the country, which is, obviously, a small financial deficit if Uber can indeed carve out an indelible mark.
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