China Life Insurance invests $600m into ride-hailing app Didi Chuxing

A taxi driver is reflected in a side mirror as he uses the Didi Chuxing car-hailing application in Beijing, China, September 22, 2015. REUTERS/Jason Lee

Chinese car-hailing app Didi Chuxing said on Monday it had received an investment of about $600 million from China Life Insurance Co Ltd, boosting resources to fund its battle with just a month after it raised $1 billion from Apple Inc.

The latest fund-raising comes with China’s top ride-hailing company locked in a struggle to fend off its global rival’s march into China. Uber raised $3.5 billion from Saudi Arabia’s sovereign wealth fund in new resources earlier this month.

The investment by China Life – the largest insurer in the Asia-Pacific region by market value – included equity of $300 million and a long-term borrowing commitment of $305 million, the companies said in a statement.

“The two parties will also collaborate on investment opportunities in mobile transportation and related sectors in China and beyond,” the statement said.

Apple invested $1 billion in May in Didi, a move that Apple Chief Executive Tim Cook said would help his company better understand the critical Chinese market.

Didi and Uber have spent heavily to subsidise fares to gain market share in China, raising speculation in local media that they might ultimately join forces. Didi itself teamed up with a former local rival last year.

Prior to the China Life investment, the company had raised about $6.3 billion including funding rounds before and after it became a merged company, according to research firm CB Insights.

In May, sources told Reuters that Didi, which completes more than 11 million rides a day, was working towards in initial public offering in the United States that would likely take place in 2018

Also Read:

With $11b warchest, Uber has only Didi Chuxing standing in the way of Asian dominance

Alibaba- Ant Financial partner to invest $400m in Didi Chuxing

Apple invests $1b in China’s ride-hailing major Didi Chuxing

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.