UPGRADE 1-China'' s Uber competing Didi Chuxing raises $600 mln from China Life Insurance

People go out of the head office building of Didi Chuxing in Beijing, China, Might 18, 2016.

Reuters/Kim Kyung-Hoon

<articleLocation” > Chinese car-hailing app Didi Chuxing stated on Monday it had gotten a financial investment of about $600 million from China Life Insurance Co Ltd, increasing resources to money its fight with Uber just a month after it raised $1 billion from Apple Inc. The latest fund-raising comes with China’s leading ride-hailing business locked in a battle to ward off its global competitor’s march into China. Uber raised $3.5 billion from Saudi Arabia’s sovereign wealth fund in brand-new resources previously this month. The investment by China Life – the biggest insurance provider in the Asia-Pacific area by market price – consisted of equity of $300 million and a long-term loaning commitment of $305 million, the companies stated in a statement. “The two parties will likewise team up on financial investment opportunities in mobile transport and related sectors in China and beyond,” the statement said.

Apple invested $1 billion in May in Didi, a relocation that Apple Chief Executive Tim Cook said would help his business much better understand the vital Chinese market. Didi and Uber have actually spent heavily to subsidise fares to gain market share in China, raising speculation in regional media that they may ultimately join forces. Didi itself teamed up with a former local competitor in 2014.

Prior to the China Life financial investment, the business had raised about $6.3 billion including financing rounds prior to and after it became a merged company, according to research study company CB Insights.

In May, sources told Reuters that Didi, which finishes more than 11 million trips a day, was working to in initial public offering in the United States that would likely happen in 2018. (Reporting by Sangameswaran S in Bengaluru; Editing by Chris Reese and Kenneth Maxwell).

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