Tech

SoftBank, Uber and Tencent expected to reap rewards from Didi IPO – TechCrunch


After years of speculation, Chinese ride-sharing giant Didi Chuxing has finally unveiled its US IPO dossier, giving some insight into its money-losing story.

Didi did not disclose the amount of his raise. Reuters said the company could raise around $ 10 billion for a valuation of nearly $ 100 billion.

Cheng Wei, the founder of Didi, 38, owns 7% of the company’s shares and controls 15.4% of its voting rights before the IPO, according to the prospectus. Major shareholder SoftBank Vision Fund owns 21.5% of the company, followed by Uber with 12.8% and Tencent with 6.8%.

The nine-year-old company, which acquired Uber’s China operations in 2016, is now more than a ridesharing platform. It has a growing range of activities such as bike sharing, grocery shopping, intra-city freight, financial services for drivers, electric vehicles and Level 4 robots, which it defines as “the pinnacle of. our design for future mobility ”for its potential to reduce costs and improve safety.

Didi set up a self-driving subsidiary that collected $ 500 million from SoftBank in May of last year. The unit now operates a team of over 500 members and a fleet of over 100 autonomous vehicles.

For the twelve months ended March, Didi served 493 million annual active users and recorded 41 million transactions daily.

Didi had operated in the red from 2018 to 2020, when he ended the year with a net loss of $ 1.6 billion, but managed to turn the tide in the first quarter of 2021 with a net profit of 837 million. dollars, which he admitted to be primarily due to investment income from the deconsolidation of Chengxin, its cash-intensive grocery group buying initiative and a divestiture of a stake.

Revenue for the quarter also more than doubled year-over-year to $ 6.6 billion. China accounts for over 90% of Didi’s income lately. The company tried to expand its presence in a dozen overseas countries like Brazil, where it bought the local rideshare company 99 Taxis.

SoftBank, Uber and Tencent expected to reap rewards from Didi IPO - TechCrunch

Of its mobility income in China, more than 97% came from carpooling between 2018 and 2020. Taxi, driver and carpooling, a lucrative business that received a makeover following two fatal accidents, accounted for a tiny fraction.

Didi plans to spend 30% of its IPO proceeds on shared mobility, electric vehicles, autonomous driving and other technologies. 30% will go to its international expansion and 20% will be used for the development of new products.



Source link

Back to top button