US-based taxi hailing app provider Lyft is looking to raise $500m in a round that would value it at $4bn, the New York Times reported yesterday.
The NYT cited four people briefed on the round, all of whom insisted on anonymity. They did not reveal the identity of any prospective participants in the round.
Founded in 2012 as an offshoot of ride sharing company Zimride, Lyft operates a ride hailing service similar to that of its main rival, Uber, or Ola, the India-based company that raised $500m this week.
Lyft’s service, which currently spans 190 US cities, facilitated the booking of seven million lifts last month, a new high for the company, and expects to make $1bn of gross revenue in 2016.
The new round would follow a $680m series E round Lyft closed in May this year, which included $100m investments by China-based partner Didi Kuaidi and Icahn Enterprises, the investment vehicle for businessman Carl Icahn, and $300m from e-commerce firm Rakuten.
E-commerce group Alibaba and internet company Tencent also participated in the series E round, which closed at a $2.5bn valuation.
Lyft secured $250m in April 2014 from Alibaba, Coatue Management, Third Point Ventures, Andreessen Horowitz, Founders Fund and Mayfield Fund, and had raised about $1.1bn in total funding prior to its latest fund raising.
News of the latest round comes at the same time as rival Uber is reportedly chasing another $1bn in funding at a valuation of between $60bn and $70bn.
– Image courtesy of Lyft, Inc.