Like many money-losing tech startups, dominant Chinese ride-hailing company Didi Chuxing has relied heavily on private equity financing since its inception in 2012. Through 23 rounds of financing, Didi raised more than $35 billion from nearly 100 investors, valuing the company as high as $62 billion in an August 2020 fundraising round.
China’s abrupt crackdown on Didi after its $4.4 billion U.S. initial public offering (IPO) June 30 sent its shares plunging, dealing those investors a hard blow, especially its biggest shareholder, Japan’s Softbank Group. SoftBank invested nearly $11 billion in Didi starting in 2015. As of Friday’s close, its stake was worth just around $11.2 billion, making the bet barely profitable.