Automotive manufacturer Toyota is mulling the possibility of investing ¥60bn ($549m) in China-based on-demand ride provider Didi Chuxing, Nikkei reported today.
Didi runs a ride hailing platform responsible for some 30 million trips each day. It spans cars, buses, electric bikes, buses and car rental. It runs a food delivery service and launched an in-app financial services offering in January this year.
In addition to its transport services, Didi is also developing its own artificial intelligence and autonomous driving technologies.
The prospective investment would come alongside the establishment of a China-based mobility service by Toyota, according to Nikkei. The carmaker has already invested in ride hailing platforms Uber and Grab, and put up another $100m for its Toyota AI Ventures unit earlier this month.
Didi has raised some $17.7bn in debt and equity funding, including capital raised by its constituent parts – Didi Dache and Kuaidi Dache – prior to their merger to form the company, most recently receiving $500m from travel services provider Booking Holdings in July 2018.
The company’s investors at the time of the 2015 merger were e-commerce group Alibaba, telecommunications firm SoftBank, internet company Tencent, car rental service eHi, Tiger Global Management, New Horizon Fund, DST Global, Matrix Partners, GSR Ventures and Citic PE.
Ping An Ventures, a subsidiary of insurer Ping An, co-led a $3bn round for Didi with China Investment Corp and Capital International Private Equity Fund later the same year, participating alongside Alibaba, Tencent, Temasek and Coatue Management.
Didi added $4.5bn in equity funding from Alibaba, its Ant Financial affiliate, SoftBank, Tencent, electronics producer Apple, insurance firm China Life and BlackRock in 2016 at a $28bn valuation, alongside $2.8bn of debt financing from China Life and China Merchants Bank.
SoftBank joined Silver Lake Kraftwerk and financial services firms Bank of Communications and China Merchants Bank to provide $5.5bn for the company in April 2017 before combining with Mubadala Investment Company to supply $4bn in December the same year.
