Didi Chuxing Raises $4 billion For International Expansion

The Chinese ride-hailing service, Didi Chuxing has announced that it has raised $4 billion in new capital, as it prepares to expand beyond the chores of its home country. The latest funding values Didi at about $56bn.

The new funding comes from a consortium of Chinese and international investors including Abu Dhabi state fund Mubadala Capital and Japanese communications group SoftBank, which is already a major investor in the ride-hailing platform.

Didi said the cash would fund a fleet of 1m new-energy cars and the rollout of a network of charging stations.  Didi is also planning to use the cash to challenge Uber in international markets.

Uber’s China arm lost an expensive subsidy war with Didi as both battled for a dominant share of the country’s massive ride-hailing market, forcing Uber to merge its China operations with Didi last year.

Didi had in April raised $5.5bn, of which $5bn came from SoftBank, which it also budgeted for international expansion.

Earlier this week, the company announced a partnership with Taiwan’s LEDI Technology to explore a franchising arrangement in the country, which would mark a significant step in expanding outside mainland China if it comes to fruition.