Didi Chuxing, China’s Ride-Hailing Giant, Holds Talks With SoftBank -
By PAUL MOZURMARCH 28, 2017
HONG KONG — Didi Chuxing, a company in China that last year bested Uber in
that huge ride-sharing market, is in negotiations to get SoftBank of Japan to take part in a multibillion-dollar investment round, according to people familiar with the talks.
Along with receiving a bigger valuation, analysts said Didi would most likely use the money to invest in next-generation technology, like autonomous vehicles,
and potentially also on international expansion, though the company has so far done little outside its domestic market.
The company has a number of high-profile investors, both Chinese and foreign, and whether it develops important technology for autonomous cars or is able to expand into other markets will become a new barometer for the abilities of companies
that have grown large in China’s relatively isolated market.
A deal with SoftBank is also intended to increase Didi Chuxing’s value, said one of the people familiar with the talks.
The fund-raising efforts by Didi Chuxing show how foreign investors currently value dominance in China, an internet market largely closed to foreign competition
that has the largest smartphone-using populace in the world.
While it is unclear whether that fund is involved in the talks over Didi Chuxing, analysts
say it could be further used to make sizable investments in big, global tech companies.
It is uncertain whether Didi would consider introducing its own service to challenge those partners as part of an
international push, look to other markets in developing countries or continue to invest in promising companies.