Uber China, the local subsidiary of US-based ride hailing service Uber, has closed a $1bn funding round featuring internet company Baidu, Reuters has reported, citing people familiar with the matter.
Baidu was reportedly joined by additional China-based investors including insurance firms Ping An and China Life Insurance, hedge fund Hillhouse Capital and financial services firm China Citic Bank, though different sources told Reuters Ping An and Hillhouse did not in fact take part.
The round was reportedly oversubscribed, valuing Uber China at $7bn. Uber China began raising funds in June, and will use the capital to support a large-scale expansion push in the country, investing considerable sums in driver incentives.
The company is primarily competing against Didi Kuaidi, the home grown market leader that raised $2bn in funding at a $15bn valuation from investors including Ping An in July this year.
Uber China is raising the cash as its parent company considers spinning it out through an initial public offering in China. Uber itself was valued at $51bn as of its last funding round in July 2015.
Baidu’s participation in the round follows the $600m investment it made in Uber in December 2014.