Chinese ride-hailing giant, Didi Chuxing is raising between $5 and $6 billion in a funding round that would value the company at around $50 billion, according to various reports. If that is true, then both the businesses would be placed in the same bracket. Didi is ranked amongst the best funded companies in China, with financial support provided by several state agencies, global venture firms and WeChat-operator Tencent Holdings Ltd.
Didi has tapped existing investors including Japan's SoftBank, China Merchants Bank and a unit of China's Bank of Communications, the person said.
Uber and Didi were in an intense battle in China until past year when the Chinese firm bought the US ride-hailing app's business in the world's second-largest economy.
The business will use this money to finally come out of China and go global. The firm led a $100 million investment in Brazilian ride-hailing service 99 in January and opened a research lab in Silicon Valley last month dedicated to artificial intelligence and self-driving-tech related research.
As the business took off, he won out over rivals through competition or acquisition. Formerly called Didi Kuaidi, the business provides ride-hailing services to about 400 million people across 400 cities in China. While the company has many partnerships with other ride-hailing service around the world, its own brand might soon be making an appearance on global roads.
Didi Chuxing is based out of Beijing. Wei incidentally, used to be a manager at Alibaba once.
Last year, Didi had succeeded in buying US-based Ubers operations in China, helping the company gain further market share.
Didi, founded in 2012, claims almost 90 percent of China's ride-hailing market after buying rival Uber's assets in the country previous year. Additionally, the company hasn't revealed who the investors are in this round of funding, though we will update here if or when we find out.