US-based ride hailing platform Lyft has closed a $600m series G round featuring e-commerce firm Rakuten that valued it at $7.5bn, Bloomberg reported yesterday.
The round also included investment firm KKR’s Next Generation Technology Fund, investment firms Janus Capital Group and Baillie Gifford, investment and research management firm AllianceBernstein and pension fund PSP Investments.
Founded in 2012, Lyft runs an on-demand ride ordering platform that was responsible for more than 70 million rides in the first three months of 2017, a 142% increase year on year. It made a loss of about $600m in 2016 from revenue of $700m, sources told Bloomberg.
A report last week stated the company had raised $500m at a $7.5bn post-money valuation but could increase the round’s size to $600m before its closure.
The fact that Lyft’s series G has mostly been funded by late-stage pre-IPO investors had led onlookers to suggest it could be preparing to go public sooner rather than later. The capital will likely fuel expansion plans that have involved launches in 100 US cities so far this year.
John Zimmer, co-founder and president of Lyft, said: “We have big plans on the horizon, and will continue investing in new technology and hospitality in order to create experiences that passengers and drivers will love.”
Lyft has now raised approximately $2.1bn altogether, Rakuten having taken part in a $1bn series F round that closed in January 2016 at a $5.5bn valuation.
Automotive manufacturer General Motors led the series F with a $500m investment, and the round included Chinese ride ordering service Didi Chuxing, e-commerce group Alibaba, Janus Capital Management and Kingdom Holding.
Rakuten, Didi Chuxing and Alibaba also took part in Lyft’s $680m series E round in 2015, investing together with internet company Tencent and Icahn Enterprises.
The company had previously secured $250m in an Alibaba-backed series D round in 2014 that also featured Coatue Management, Third Point Ventures, Andreessen Horowitz, Founders Fund and Mayfield Fund.