US-based transportation network company Lyft, backed by a multitude of corporates including Chinese peer Didi Chuxing, is in talks to raise at least $500m, the Wall Street Journal reported yesterday.
The deal, if it goes ahead, would value Lyft at $6bn to $7bn, a slight increase over the $5.5bn it secured for its $1bn funding round in January 2016. That previous round was led by carmaker General Motors with a $500m commitment.
E-commerce businesses Alibaba and Rakuten, ride sharing service Didi Chuxing, investment management firm Janus Capital Management and Saudi Arabia-based investment holding company Kingdom Holding completed that round.
General Motors, which owns a 9% stake in Lyft, later made an acquisition offer in August but the bid was rejected.
Founded in 2012, Lyft operates a ride hailing service. The company trails its rival Uber in terms of equity funding and reach, having secured more than $2bn to date and focusing on the US – while Uber has raised some $13bn and is aiming to be an internationally dominant player.
Lyft is also informally considering an initial public offering, according to TechCrunch, but no decision has yet been made.
Alibaba, Rakuten, Didi Chuxing, internet company Tencent and Carl Icahn’s investment vehicle Icahn Enterprises, previously put a total of $680m into a series E round in 2015.
In 2014, Alibaba also took part in a $250m series D round alongside Coatue Management, Third Point Ventures, Andreessen Horowitz, Founders Fund and Mayfield Fund.