Tech

China's Uber rival Didi Chuxing raises $600 million from China Life Insurance

Didi Chuxing raises $600M from China Life Insurance
VIDEO0:3700:37
Didi Chuxing raises $600M from China Life Insurance

Chinese car-hailing app Didi Chuxing said on Monday it had received an investment of about $600 million from China Life Insurance, boosting resources to fund its battle with Uber just a month after it raised $1 billion from Apple.

The latest fund-raising comes with China's top ride-hailing company locked in a struggle to fend off its global rival's march into China. Uber raised $3.5 billion from Saudi Arabia's sovereign wealth fund in new resources earlier this month.

The investment by China Life - the largest insurer in the Asia-Pacific region by market value - included equity of $300 million and a long-term borrowing commitment of $305 million, the companies said in a statement.

"The two parties will also collaborate on investment opportunities in mobile transportation and related sectors in China and beyond," the statement said.

Didi Chuxing President: We just clicked with Apple
VIDEO4:2404:24
Didi Chuxing President: We just clicked with Apple

Apple invested $1 billion in May in Didi, a move that Apple Chief Executive Tim Cook said would help his company better understand the critical Chinese market.

Didi and Uber have spent heavily to subsidize fares to gain market share in China, raising speculation in local media that they might ultimately join forces. Didi itself teamed up with a former local rival last year.

Prior to the China Life investment, the company had raised about $6.3 billion including funding rounds before and after it became a merged company, according to research firm CB Insights.

In May, sources told Reuters that Didi, which completes more than 11 million rides a day, was working towards in initial public offering in the United States that would likely take place in 2018.

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