China's Ride-Sharing App Didi Raises $4 Billion in New Funding

China's Ride-Sharing App Didi Raises $4 Billion in New Funding

China's ride-hailing unicorn Didi Chuxing has completed its second multi-billion funding round in eight months, as the company looks to expand into several new business areas, Caixin reports.

The injection gives Didi US$12 billion in cash reserves and a valuation of US$56 billion, sources were quoted as saying.

Li Chao, a senior analyst at market research company iResearch, said it is a natural move for Didi to enter the internet finance sector, as the company processes a huge amount of data every day.

In a statement, the firm said it plans to scale up investments in AI talent and technologies, to further build up its intelligent driving and smart transportation capabilities, and to bring more innovative and diversified transportation services to broader communities around the world. Existing investors in the company include Apple, Tencent and Alibaba.

The company, which has announced plans to expand internationally earlier this year, establishing an worldwide arm in February.

The company declined to disclose the identity of its newest investors, and in a statement on its website, said just this: "Chinese and worldwide institutions joined the latest fundraising round". Tech giant SoftBank is close to buying a 13.4% stake in Uber at a steep discount - the investment would value Uber at about 20% less than the $68 billion that investors thought it was worth in its most recent funding round past year.

Didi Chuxing announced in August that it is backing Uber's Estonian rival Taxify with financial investment and support on technology developments.

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