Ever since Apple invested $1 Billion in Chinese app based cab service provider, Didi Chuxing, it was raising a lot of eyebrows. The latest development says that the taxi service provider has closed the ongoing round of funding at a whopping $4.5 Billion, bringing it among the top valued young startups. The funding was raised at a valuation of $28 Billion, compared to $16.5 billion as of last year.
Along with the equity funding, Didi Chuxing has also raised $2.5 Billion in debt financing from China Merchants Bank. Also, China life had invested $600 million a couple of days back, out of which, half went to the equity round and the other half went as debt financing.
Didi Chuxing has been taking on Uber and with its partnerships overseas including India’s Ola, United States’s Lyft Inc and South East Asia’s Grab. The two rivals have been against each other visible in China, world’s second larget economy. With the growing competition, the cash burn rate is increasing at a much faster rate, however, the company is just looking to increase the market-share on the basis of subsidized rates.
Didi Chuxing has been backed by two of the biggest names in China, Alibaba and Tencent. Also, the company is reportedly targeting an IPO next year in New York.