US-based ride sharing app provider Uber Technologies has raised “close to” $1bn in equity funding from investors including software provider Microsoft, the Wall Street Journal reported on Friday.
The round, which valued Uber at $51bn, also included India-based media conglomerate Times Group, and came directly after Uber announced it is planning to invest $1bn to build its market share in India.
The funding appears to be separate from the $1bn in convertible debt Uber was said to be raising in June from investors including hedge fund Hillhouse Capital. The valuation is larger than Facebook’s at the time of its last private funding round in 2011.
The terms of the convertible note financing indicate that the latest round could end up being the last equity capital Uber raises before seeking an initial public offering, though if reports suggesting it is making substantial losses are indeed true, the company may elect to postpone a flotation until it can claim a substantial market share in the vast markets of India and China.
Amit Jain, president of Uber India, said last week: “India is one of Uber’s big priorities, along with China and [ride pooling service] UberPool. We are extremely bullish on the Indian market and see tremendous potential here.
“This is why Uber is committing an additional $1bn to India in the next nine months so we can expand and improve our operations, expand into newer cities, develop new products as well as payment solutions, and establish a great support network.”
Uber has now raised more than $5bn in total equity funding and almost $7bn in combined debt and equity. Its tie-up with Times follows a partnership with diversified China-based internet company Baidu, from which it received $600m in funding in December 2014.
Uber’s other investors include Google Capital, the growth equity arm of internet company Google, Sequoia Capital, TPG, Fidelity Investments, Wellington Management, Kleiner Perkins Caufield & Byers, Menlo Ventures, CrunchFund, Goldman Sachs, Lowercase Capital, First Round Capital and Innovation Endeavors.