Telecommunications and internet group SoftBank has agreed an investment in US-based ride hailing service Uber that will be sized in the billions, TechCrunch reported yesterday.
Uber’s platform has been responsible for more than 5 billion rides since the company was founded in 2009, and the company is present in more than 80 countries worldwide. It had raised $11.5bn in financing prior to the latest deal.
Reports last month stated that SoftBank was set to lead an $8bn to $10bn secondary investment in Uber as part of a special purpose vehicle that would include ride hailing platform Didi Chuxing, investment firm Dragoneer and potentially growth equity firm General Atlantic.
The secondary investment would give the consortium a stake of about 14%, and they would pay an additional $1bn for primary shares at a higher valuation of almost $70bn, TechCrunch had previously reported, though none of the details have yet been confirmed.
An Uber spokesperson told TechCrunch in a statement: “We have entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment.
“We believe this agreement is a strong vote of confidence in Uber’s long-term potential. Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”
The $1bn in funding is contingent on Uber shareholders selling a sufficient number of shares in the tender offer, which is expected to launch before the end of this month.
Didi Chuxing is an existing investor in Uber, as are internet and technology conglomerate Alphabet, media groups Axel Springer and Bennett Coleman and Co, software provider Microsoft and a wide range of institutional and angel investors.