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.
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.”