![]() Uninspiring stock performances by Uber and Lyft have also discouraged Didi from seeking a U.S. U.S.-listed Chinese companies now also face tightened scrutiny and more strict audit requirements from U.S. The new timetable for the IPO and the private fundraising round ahead of the planned IPO have not been reported before.Īll three people familiar with the matter said Didi has now opted to consider Hong Kong for the listing amid deteriorating U.S.-China relations that have left tech firms like TikTok owner ByteDance in the crosshairs. In the private secondary market, some of its shares are trading well below a valuation of $56 billion it reached in 2017. Founded eight years ago, Didi has begun generating healthy profit since the second quarter of the year and some of its investors are now keen to cash in, said one of the people.ĭidi is also considering a new fundraising round ahead of the IPO in a bid to boost its valuation, two of the people said. ![]() The people said the Beijing-based company is targeting a valuation of more than $60 billion by the time of launching the IPO, expected as soon as in the first half of 2021. The people spoke on condition of anonymity as the information, including the identity of the banks, was private. It comes at a crucial time as well.Didi, backed by technology investment giants SoftBank, Alibaba and Tencent, has started initial talks with investment banks for the long-awaited IPO, according to three people. The move to roll out financial services is a way for the company, founded in 2012 in Beijing, to generate a new stream of revenue. The committee members responsible for safety will promote and implement safety reform work, invest in online and offline resources, and thoroughly improve our standards for safety," the company said, attributing the comment to both Cheng and Didi President Jean Liu. "Safety is the number one priority for our users. In a post on its official WeChat account, the company said it would create two top positions, a chief safety officer reporting to Cheng, and a chief information security officer reporting to chief technology officer Bob Zhang. To address the safety issue, Didi announced a reorganization plan last month. In 2017 too, two female customers were killed by their Didi drivers.Ĭonsidering the risks involved, the Ministry of Transport in late November 2018 said Hitch would remain offline until it corrected its safety problems, making things more difficult for Didi as far as profit was concerned. Both the women were using Didi's profitable carpooling Hitch service. Two passengers, both female, were killed in separate incidents involving Didi drivers. Besides this, Didi has come under fire over safety concerns. ![]() In September 2018, the company's chief executive and founder Cheg Wei sent an internal letter to employees, stating the company has not turned a profit during recent years, and suffered a net loss of 4 billion yuan ($582 million) in 2018's first half alone. Despite having a strong presence in China, the previous year didn't end on a happy note for the company. At its core, Didi, which has investments from the likes of Alibaba Group, Ant Financial Services Group and Apple, offers a range of transportation services for 550 million users, including taxi, express, premier, bus, designated driving, bike sharing and car sharing, ferried around by over 30 million drivers. The step to diversify outside the ride-hailing business comes after a year of safety scandals, and reported losses. Through its auto financing solutions, said Didi, it will work with its new auto solutions business to "expand a quality supply base for China's vibrant mobility market by creating effective links between top-tier drivers and partners and a high-quality supply of new energy vehicles, through competitive and reliable purchasing, leasing, trading and financing services".
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