After raising USD 1.2 billion series E funding earlier this month at USD 40 billion valuation, now US based on-demand car service, Uber is reportedly set to raise USD 600 million from Baidu to fuel its growth in China. Till date, the company had received a total capital of USD 2.7 billion in 7 rounds from 32 investors.
As per Bloomberg report, on December 17, Chinese search company Baidu will make an investment announcement in US start-up that’s a ‘household name’. Report also suggest that Uber will receive cash and non-cash assets as part of the deal including Baidu’s online resources.
Uber is operating in over 250 cities in 50 countries. It’s rival Malaysia-headquartered taxi app, GrabTaxi has secured USD 250 million funding round from Softbank this month. Ola too had raised USD 210 million from Softbank.
Uber is on fire globally. It is facing a number of regulatory and legal hurdles with its business in India, California and Germany has prohibited its entry. Four days back, the Delhi Government banned all activities by cab service after one of its drivers was arrested on charges of raping a woman. And has stopped its activity in national capital region. It might face a nation-wide ban as well.
Hence it appears that its expansion plans in Asia will now be focused in the Oriental countries. While it is facing a set back in India, with this funding from Baidu it will be able to penetrate in China to stick to its objective.