Business, Investments

Uber Secures USD 1.6B in Covertible Debt from Goldman Sachs; Restarts Operations in New Delhi

Image Source: Uber

Image Source: Uber

After raising USD 1.2 billion series E funding in December 2014 at USD 40 billion valuation, now US-based on-demand car service Uber has secured USD 1.6 billion in convertible debt from Goldman Sachs’ wealth management clients.

As per a VCCircle report, the new funds will be used to expand its services to more cities as well as for research and development. The financing is in the form of a six-year bond that will convert into equity at a 20-30 percent discount to Uber’s valuation at the time of an initial public offering (IPO). Including this round, the firm has received a total capital of more than USD 4.3 billion.

Its rival, Malaysia-headquartered taxi app, GrabTaxi has secured USD 250 million funding round from Softbank recently. Ola too had raised USD 210 million from Softbank.

In 2014, the Delhi Government banned all activities by cab service after one of its drivers was arrested on charges of raping a woman. But, now Uber has restarted services in India’s capital after the company agreed to apply for a radio taxi license.

As per Reuters report, Uber also said that it would introduce additional safety measures including more stringent driver checks, an in-app emergency button and a dedicated incident response team.

“We are setting an even higher standard than current industry requirements,” Uber said in a statement. “Our commitment to make transportation safe in Indian cities has never been more absolute.”

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