China’s ride-sharing behemoth, Didi Chuxing has unveiled its IPO filing in the U.S., which is estimated to be at $10 Billion. If this round is successfully executed, it can raise the valuation of the company to $100 Billion. As per the prospectus, Didi’s 38-year-old founder Cheng Wei owns 7% of the company’s shares, and controls 15.4% of its voting power before the IPO, according to the prospectus. Major shareholders to reap returns are SoftBank Vision Fund, which owns 21.5% of the company, Uber owns 12.8%, and Tencent owns 6.8%.
The nine-year-old company had acquired Uber’s China operations back in 2016 and has expanded strength to strength since then. It has a growing line of businesses like groceries, financial services, bike-sharing, intra-city freight, and Level 4 robotaxis, among others. Chuxing set up an autonomous driving platform that received $500 million funding from SoftBank’s second Vision Fund in May 2020. The unit now operates a fleet of over 100 autonomous vehicles and a team of over 500 members. It is also investing heavily in electric vehicles.
Categories: Venture Capital