Uber China closes $1 billion fundraising round: Sources

Beijing: Uber Technologies Inc’s China arm has closed its $1 billion fundraising round early, according to two people with knowledge of the matter, with investors still hopeful for the US-based ride service despite strong domestic competition in the car-hailing market.

Investors in Uber’s Chinese unit include Hillhouse Capital, Asia’s biggest hedge fund, Chinese Internet giant Baidu Inc , China CITIC Bank Corp Ltd, China Life Insurance Co Ltd, Ping An Insurance Group Co of China among others, said one of the people.

A spokeswoman for Uber declined to comment. 

With the close of the $1 billion round, Uber is re-lining its war chest for a drawn out battle with Chinese car-hailing app rival Didi Kuaidi, which last month raised $2 billion. The two are locked in a turf war, spending heavily on subsidies to lower the cost for users and inflate the money earned for drivers of their services.

The deal was oversubscribed, said the second source directly familiar with the fundraising. According to a fundraising document seen by Reuters last week, this round values Uber China at $7 billion, with the unit planning to list on the mainland by 2020.