Ridesharing service provider Uber Technologies Inc has raised a whooping $1 billion investment from Chinese investment management firm Hillhouse Capital Group.
The deal involves buying bonds that convert into shares at a discount to the company’s initial public offering (IPO) price. A spokesperson for Uber in India did not comment on the development.
Although Hillhouse is a Chinese investment group, this round won’t be channelized towards Uber’s China operations, it would actually be poured into the company’s global parent company.
One of the striking facts about this investment is that Hillhouse Capital is also an investor in Didi Kuaidi Joint Co, which happens to be China’s largest taxi-hailing app currently competing with Uber in that market, reports Business Insider.
The Chinese market is extremely important for Uber given that there it has a host of partners including the country’s biggest search engine Baidu Inc.
A leaked email from Uber CEO Travis Kalanick stated that China is the number one priority for Uber’s global team. Guangzhou, Hangzhou, and Chengdu have overtaken New York to become the largest cities for the company on a trips basis.
Last year, in December Uber had raised two funds – $1.2 billion from NEA, Qatar Investment Authority and others , and $600 million from Baidu. This year the company has raised 2.6 billion in two individual rounds, from Goldman Sachs, Times Internet and Foundation Capital. Including the latest round, the firm has raised a total capital of $5.9 billion in 10 Rounds from 43 Investors.