Taiwan’s Foxconn invests $120m in Didi Chuxing, valuing ride app firm at $33.7b

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

Taiwan’s Foxconn has invested $119.9 million in Chinese ride-hailing firm Didi Chuxing via one of its subsidiaries, the world’s largest electronics manufacturer said on Thursday, in a deal that could value the start-up at about $33.7 billion.

With the addition of Foxconn, Didi’s roster of investors is increasingly a who’s who of global tech giants, including the likes of Apple Inc, Uber Technologies Inc and Chinese firms Tencent Holdings Ltd, Alibaba Group Ltd and Baidu Inc.

The deal was made public in a stock exchange filing by Hon Hai Precision Industry Co Ltd, the trading name of Foxconn. In the statement, Foxconn said its subsidiary Foxteq Holdings Inc would own 0.355 percent of Didi, one of China’s highest-valued start-ups.

The transaction gives Didi a valuation of $33.7 billion, according to Reuters’ calculations.

The two companies now “are exploring possibilities but there are no concrete plans yet,” a Didi spokeswoman said in an email.

In a coup for the Beijing-based firm, it last month agreed to buy ride-hailing rival Uber’s China unit after a bruising two-year battle, a deal that in return gave the U.S. company a one-fifth stake in Didi.

The merged entity was worth around $35 billion, combining Didi’s most recent $28 billion valuation and Uber China’s $7 billion worth, a source familiar with the matter said at the time.

Foxconn has previously invested in the auto industry with a stake in Future Mobility. That company, also backed by Tencent, is one of an expanding field of China-backed ventures that aim to take on Tesla Motors Inc as green energy car sales boom in China.

Foxconn also has close ties to Apple, as the U.S. company’s main assembler of iPhones. Apple in May invested $1 billion in Didi, and the U.S. titan is expected to enter the automotive business.

At the same time, Silicon Valley has been buzzing about Apple’s plan to build an electric car. In May, Reuters reported the company appeared to be laying the groundwork for the infrastructure and related software crucial to powering such a product.

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By Twinnie Siu in Hong Kong

Reuters

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.

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.