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Uber China’s rival Didi confirms new financing round

Zhu Jingshi, Didi Chuxing’s VP of Strategy, said on Thursday at the Credit Suisse Asian Investment Conference that Didi will complete its new financing round.

In February, a rumor surfaced that Didi raised at least USD one billion for the new round of funding, which Didi didn’t confirm until now. According to Bloomberg, the company’s funding target has surpassed USD 1.5 billion, and this round is expected to push the company’s valuation to USD 25 billion. Internet giants Alibaba and Tencent are among the investors in this round.

This new round of funding comes only half a year after its previous round of financing, which brought the company USD 3 billion. Zhu said Didi is now gaining profit in many cities, with its subsidies for drivers reduced to a new low. “Didi is closer than ever to profit. We are breaking even in close to 300 cities of the 400 we operate in now. We expect to reach the general break-even point soon.”

“I thought Didi and Kuaidi’s marriage was the grand final. It turns out it was just the playoffs,” said Didi’s CEO Cheng Wei at the 2015 Summer Davos. Didi’s rivals not only include Uber, who invests USD one billion to burn in China each year. UCAR is rumored to be in talks for a strategic agreement with Alibaba, and Yidao Yongche, backed by LeEco, is also rising as a competitor in the market.

According to Huxiu, Didi plans to earn USD 540 million in 2016, and profit is expected to reach USD 1.02 billion in 2017 and USD 1.51 billion in 2018. Didi’s current round of funding may help it explore new services and businesses.

Spokesperson from Didi did not comment on the financing news with AllChinaTech.

(Top photo from Baidu.com)

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