US-based ride-sharing company Lyft, previously backed by e-commerce company Alibaba, is in talks to secure another $250m round which would value it at $2bn, the New York Times reported yesterday.
Alibaba is said to be involved in the talks, but is not expected to lead the round. Lyft could seek up to $500m depending on investor interest.
Lyft previously raised $250m in an April 2014 series D round from Alibaba, hedge fund sponsor Coatue Management, Third Point Ventures, a venture capital subsidiary of investment adviser Third Point, Andreessen Horowitz, Founders Fund and Mayfield.
Founded in 2007 as Zimride, the company has secured $332m to date. If it closes the round, Lyft will use the funding to support rapid expansion beyond the 60 cities in the US in which it is currently present.
Lyft’s capital and reach is dwarfed by competitor Uber, which has raised $4bn to date and operates in some 250 cities across 54 countries.
– image courtesy of Lyft