Photo credit: Didi Chuxing.
The news:
- China’s leading ride-hailing app Didi Chuxing is raising as much as US$6 billion in new funds from investors such as SofBank, according to Reuters sources.
- The latest round, reportedly for international expansion, will value the company at over US$50 billion.
Why it matters:
- This financing would catapult Didi into becoming China’s most valuable startup, beating smartphone maker Xiaomi, which got the title after a 2014 round worth US$46 billion.
- It will fuel Didi’s overseas expansion amid a threat from local regulatory changes. Some rules previously released would slash the number of its drivers and double the fares of its users in major cities.
- Since acquiring Uber’s unit in China, Didi has invested in a similar app in Brazil and opened a lab in Silicon Valley that’s focused on artificial intelligence.
Source: Reuters
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