US-based ride hailing service Uber Technologies is seeking up to $2.1bn in a funding round that would value it at $62.5bn, Bloomberg reported yesterday citing people familiar with the matter.
Uber, which is backed by investors including Microsoft, Google’s holding company Alphabet, internet company Baidu, and media and internet firm Times Group, has filed paperwork in Delaware detailing the funding plans and has already recruited investment firms Tiger Global Management and T. Rowe Price for the round.
Founded in 2009, Uber has grown into the largest player in the online taxi hailing sector. In addition to spending considerable sums to grab a foothold in China and India, it has also dipped a toe into food delivery and has been researching self-driving cars over the past few months.
Perhaps more importantly, Uber needs to raise extra money to carry on fighting off regional rivals.
India-based Ola, China-based Didi Kuaidi, US-based Lyft and Singapore-based GrabTaxi jointly announced a strategic collaboration agreement yesterday that will involve them making their apps compatible with each other for travelling users.
Sources informed Bloomberg that Uber is telling investors its gross revenue run rate has reached more than $10bn globally and it has increased gross revenue 200% in 2015. Its service is reportedly now profitable in 80 cities.
The company and its Uber China subsidiary have already raised more than $8bn in debt and equity financing, closing $1bn in funding in August this year at a $51bn valuation.
Uber’s existing backers also include insurers Ping An and China Life Insurance, Citic Bank, Hillhouse Capital, Sequoia Capital, TPG, Fidelity Investments, Benchmark Capital, Wellington Management, Kleiner Perkins Caufield & Byers, Menlo Ventures, Data Collective, CrunchFund, Goldman Sachs, BlackRock, Lowercase Capital, First Round Capital, New Enterprise Associates and Innovation Endeavors.