US-based ride sharing company Lyft has secured $250m in a round supported by China-based e-commerce company Alibaba, according to a post on its company blog yesterday.
In addition to Alibaba, investors in the round included hedge fund sponsor Coatue Management, Third Point Ventures, which acts as a venture capital subsidiary of investment adviser Third Point, and existing backers Andreessen Horowitz, Founders Fund and Mayfield.
Founded in 2007 as Zimride, Lyft has reportedly now raised more than $332m, Andreessen Horowitz having invested $60m in the company’s series C round in May 2013.
Lyft will likely use the cash to accelerate its expansion across the US, having entered Detroit, Providence, Pittsburgh, Houston, Columbus, Minneapolis and Madison so far in 2014. The fundraising follows a $258m round closes by Lyft’s main rival and current market leader Uber in August 2013 from Google Ventures and TPG Growth.
The deal also represents further activity by Alibaba, which has ramped up its external investments in the wake of news that it plans to list in the US later this year.
As well as Alibaba’s recent activity, which includes a $692m investment in China-based retail chain InTime and $215m in funding for free mobile communication service Tango, a company owned by Alibaba founder Jack Ma yesterday invested RMB 3.3bn ($531m) for a controlling stake in China-based financial software producer Hundsun Technologies.
– Photo courtesy of Lyft.com