China-based ride sharing app operator Didi Kuaidi has raised the target for its next funding round from $1.5bn to $2bn, the Wall Street Journal reported on Friday citing people familiar with the situation.
Didi Kuaidi was formed earlier this year through a merger between the two largest taxi hailing apps in China by market share, Didi Dache and Kuaidi Dache. It operates in more than 360 Chinese cities and has expanded into carpooling and private car services.
Reports two weeks ago suggested the company, which counts e-commerce company Alibaba and internet portal Tencent among its backers, was in the process of raising $1.5bn, but the round has been oversubscribed according to a letter to investors from Didi Kuaidi CEO Cheng Wei.
The cash is set to be raised at a $15bn post-money valuation, according to the WSJ.
Didi Kuaidi is currently experiencing rapid growth, the letter stated, claiming it books three million taxi rides each day, and is staving off heavily funded, US-based competitor Uber, which has formed its own UberChina subsidiary to compete in the country.
The China-based company intends to also expand its offering further in the long term.
“Our platform strategy also leaves huge room for adjacent products and services ranging from public transportation to logistics to auto services, as well as financing, mapping technologies and location-based services, among others,” Cheng said in the letter.
Didi Dache and Kuaidi Dache had jointly raised about $1.5bn prior to the merger, before securing an additional $742m from investors including social network operator Sina Weibo, Coatue Management and Farallon Capital Management earlier this year.