China-based ride-sharing companies Didi Dache and Kuaidi Dache, collectively backed by internet company Tencent, telecom company Softbank and internet company Alibaba, is set to raise $600m, China Money Network reported earlier today.
The round will be led by hedge fund Coatue Management and featured Farallon Capital Management, as well as a range of unnamed institutional and private investors.
The parties are buying their respective stakes from Kuaidi Dache’s management team who are expected to leave the company within the next six months. The stake purchase values the company at $8.8bn.
Kuaidi Dache and Didi Dache agreed to merge in February 2015, with the combined company then valued at $6bn and covering 95% of the Chinese market. The investors have agreed to take a stake in the merged company.
Kuaidi Dache obtained $600m in a January 2015 round led by Softbank subsidiary Softbank Internet and Media and including Alibaba as well as Tiger Global. In 2014, Kuaidi received $100m from Alibaba, Matrix Partners and New Horizons. Alibaba also provided a $10m series A round alongside Matrix Partners in 2013. Car rental company eHi invested $25m.
Didi Dache meanwhile closed a $700m series D round in December 2014. The round included Tencent and was co-led by Singapore’s sovereign wealth fund Temasek and investment firm DST Global. Tencent also backed a $100m series C round in January 2014 and $15m series B round in May 2013. Didi Dache has secured a total of $820m in funding.
Kuaidi Dache and Didi Dache continue to operate under their respective brands.