China-based ride hailing company Didi Kuaidi is set to close a $1.5bn funding round that would value it at more than $25bn, the Wall Street Journal reported on Thursday citing people familiar with the matter.
Internet company Tencent and e-commerce group Alibaba are both investing in the round and are set to participate alongside other existing backers as well as new investors. The round is expected to formally close later this month.
Formed by the merger in February 2015 of China’s two market leaders in the sector, Didi Dache and Kuaidi Dache, Didi Kuaidi retains the largest market share in the country, despite big spending from US-based competitor Uber, and operates across taxis, private cars, buses, carpooling and business transport services.
Didi Kuaudi spokeswoman Sun Liang told DealStreetAsia today the company has an 87% market share in China, and claims it handles eight times more rides than Uber does throughout North America. Its valuation after the latest round would be more than four times larger than at the time of the merger.
Didi Kuaidi has so far raised $4.5bn since the formation of Didi Dache and Kuaidi Dache, with Alibaba and Tencent contributing to a $3bn round closed in September 2015 that included insurance firm Ping An, Temasek, China Investment Corp, Capital International Private Equity Fund and Coatue Management, valuing the company at $16bn.
The company’s existing investors also include online messaging service Sina Weibo, car rental platform eHi, telecommunications and internet firm SoftBank, DST Global, Matrix Partners, New Horizon Fund and Citic PE.