China’s Ride-Hailing Company raises $4 billion in the latest Funding

China’s ride-sharing platform Didi Chuxing Technology Co. has raised $4 billion in a new round of funding that will help the company with intermetal expansion and technology developments.

The latest investment gives Didi a valuation of about $50 billion, according to Reuters.

According to the Wall Street Journal, the fundraising attracted investors including SoftBank Group Corp. and Abu Dhabi state fund Mubadala Development Co.

Didi said the new funding will help support AI capacity-building and development of new vehicle service networks.

“With a substantial cash reserve, DiDi plans to scale up investments in AI talent and technologies, to further build up its intelligent driving and smart transportation capabilities, and to bring more innovative and diversified transportation services to broader communities around the world. We will also embark on initiatives in building new energy vehicle service networks, as part of the company’s efforts to lead the transformation of automobile and transportation industries and work towards global energy interconnection.” Didi said in a statement.

The new investment will also help Didi to challenge its rival Uber. Didi is now exploring the opportunity to enter Taiwan.

“The new round is pretty important for Didi. With the Chinese market very much stabilized, Didi has to go out to find new growth opportunities,” said Will Tao, an analyst with consultancy iResearch. “Its first steps in overseas expansion should be in Southeast Asian markets like Vietnam and Malaysia, because Uber has a strong presence in Europe and the U.S.”

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