Chinese ride-sharing company Didi Chuxing is in talks to raise $6 Billion in funds from Japan-based capital firm Softbank Group Corp. These funds will help Didi to take on global rival Uber Technologies Inc, Bloomberg reported on Tuesday citing people familiar with the matter.
Bloomberg says that if completed, “the funding would be the single largest for a Chinese technology startup on record.” It’s not clear if the $6 billion round would come from SoftBank Group or its $100 billion SoftBank Vision Fund, which is expected to close soon and also counts Apple among its investors.
Didi Chuxing, formerly Didi Kuaidi, is a major ride-sharing company, providing transportation services for close to 400 million users across over 400 cities in China. Its headquarters is located in Beijing. Started back in June 2012 by Cheng Wei, Zhang Bo, and Wu Rui, the company manages subsidiaries like Didi Dache, UberChina & DIDI Bus.
The company is facing regulatory challenges at home over its drivers even as it looks to diversify from its core ride-hailing business to find new drivers for growth. Didi Chuxing also has to cope with new regulations that limit its driver pool in Beijing, Shanghai and other cities.
The ride-hailing platform bought out Uber’s China unit last year following a bruising two-year battle in a deal that created a merged entity then worth around $35 billion and that gave Uber a one-fifth stake in the Chinese firm.