US-based taxi hailing app operator Uber has added $1bn to a series E round that now totals $2.8bn, the New York Times reported yesterday, citing documents filed with Delaware’s secretary of state.
Uber, which confirmed the funding in a brief statement, had already raised $1.2bn from undisclosed investors in early December before securing a further $600m from social networking company Baidu later the same month.
The company then captured a further $1.6bn in convertible debt financing from Goldman Sachs’ wealth management clients last month. Reports at the time stated it had about $600m of extra capacity for the round and was in talks with hedge funds to provide the capital.
However, interest proved to be more fervent than expected and the round ended up being heavily oversubscribed. Uber has now raised about $5.9bn in total debt and equity since its formation in 2009.
The new funding will support a range of initiatives being pursued by the company, including UberPool, a ride-sharing system that enables customers to travel together and split the cost of a journey, and an international push that will involve it bolstering its European operations while driving further into the Asia-Pacific region.
Uber is likely to come up against stiff competition in Asia, particularly in the Chinese market, where the two biggest players, Kuaidi Dache and Didi Dache, announced plans last week to merge into a $6bn company.
Lyft, the company’s biggest rival in the US, is also seeking funding, and has begun talks over a $250m round that would value it at $2bn.
Apart from Baidu, the investors in Uber’s series E round have not been disclosed, though TechCrunch listed Sequoia Capital, TPG, Fidelity Investments, Wellington Management, Kleiner Perkins Caufield & Byers and Menlo Ventures as possible participants.
All five are existing investors in the company, as are diversified internet company Google, CrunchFund, Lowercase Capital, First Round Capital and Innovation Endeavors.