Uber's Chinese arm closes $1bn fundraising earlier than expected
Uber Technologies’ Chinese division has closed its $1bn fundraising rounds earlier than expected.
According to sources familiar with the matter cited by Reuters, the US group remains hopeful the service will prove to be a success in the world’s second largest economy, despite strong competition from Chinese car-hailing app Didi Kuaidi, which raised $2bn in July.
Uber and its Chinese rival have spent heavily to lower the costs for their users, while trying to ensure a substantial return for their drivers.
China Life Insurance, China CITIC Bank and internet giant Baidu are understood to be among the investors in Uber’s Chinese arm.
Hillhouse Capital, one of the stakeholders in Uber’s US-based business, and Chinese financial conglomerate Ping An Group’s investment arm are also reported to have been involved in the fundraising, although the latter declined any involvement.
A separate source, meanwhile, indicated Hillhouse Capital was not among the investors either.
The fundraising was oversubscribed, one of the sources cited by Reuters added and, according to news agency, the fundraising would value Uber China at approximately $7bn.