Chinese Uber-rival Didi Chuxing gets $4 billion in new funding

Didi Chuxing secures $4bn to fund international expansion

China's Didi Chuxing Technology Co., which offers a ride-hailing service akin to Uber, has brought in more than $4 billion from a group of private investors, according to a Thursday statement.

According to Didi it meant to use the proceeds to "scale up investments in AI (artificial intelligence) 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". 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.

The money is meant to support Didi in artificial intelligence capacity-building, worldwide expansion and other new business initiatives, such as the development of new energy vehicle service networks.

Didi's latest valuation includes its acquisition of Uber's China operations, which it bought previous year following a fierce battle between the rivals that was losing both companies money.

The investment would extend Didi's valuation to $56bn.

It has also teamed up with overseas competitors, including Lyft in the U.S., Grab in Singapore, Ola in India, Taxify in Estonia and Careem in the United Arab Emirates.

In a very brief statement announcing the funding, Didi said that "Chinese and global institutions joined the latest fundraising round".

The Wall Street Journal which cited sources reported that Abu Dhabi state fund Mubadala Capital also invested in the funding round.

Its other tech investments include GlobalFoundries, a semiconductor manufacturer, UAE-based satellite company Yahsat, and a stake in Dubai telecom operator du.