Didi travel is valued at US $95 billion in the private market, with an annual increase of over 50%


Tencent technology news on June 11, people familiar with the situation disclosed on Thursday that didi travel’s valuation in the private market in recent months has reached $95 billion. Pitchbook, a data analysis service, raised capital last year at a valuation of $62 billion. This means that the value of didi travel has risen by more than 50% in the past year.
Didi travel submitted its prospectus to the US Securities and Exchange Commission on Thursday, intending to land on the US stock market under the name of “Xiaoju kuaizhi”. In the prospectus, the company has not disclosed such information as the offering price range and volume, and the amount of $100 million raised is a place holder, which may change in the future. Investment banks Goldman Sachs, Morgan Stanley and JPMorgan Chase are co lead underwriters of didi travel’s IPO.
China’s novel coronavirus pneumonia has been the biggest investment in Softbank group, and its rebound has accelerated after the new crown pneumonia epidemic subsided in China. According to media reports in April this year, Didi travel has been considering seeking a valuation of as much as $70 billion to $100 billion in its IPO. According to the prospectus of didi travel, Tencent, Softbank vision fund and Uber are the major shareholders of didi travel, holding a total of about 41%. Cheng Weifang, co-founder of didi travel, owns 7% of the company.
Although didi travel’s business has expanded to 15 countries and regions around the world, most of its revenue still comes from China’s online car Hailing business. In 2020, Didi’s travel revenue will reach 21.6 billion US dollars. In the first quarter of this year, as China recovered from the epidemic, Didi travel’s revenue more than doubled to $6.4 billion. The company also made a profit in the first quarter, with a net profit of $837 million.
Safety record
In the summer of 2018, Didi driver was suspected of murdering passengers, which triggered public anger and massive deletion of the company’s app. The founder of didi travel, Cheng Weiwei and Liu Qing, called the incident the darkest moment of didi travel“ In the summer of 2018, there were two tragic security incidents on our “free ride” platform, “they wrote in their letter to investors in the prospectus“ These completely shocked us. We felt a great sense of sadness and responsibility and began a period of profound self reflection. ”
The company listed security as one of the risks to its business, saying failure to ensure security could lead to the loss of customers. Didi travel said in its prospectus that after the death, the free ride service was suspended for more than a year to develop procedures to protect passengers and drivers.
Other potential risks faced by didi travel are similar to those of its global online car Hailing competitors. In its prospectus, the company said competitors may drive down customer prices for didi travel; To tap the more potential income of online car Hailing drivers; If online car Hailing drivers are reclassified as employees, their business model will be affected, etc. The company also mentioned the possibility of antitrust penalties or regulation.
Technical enthusiasm
The IPO will mark a significant transformation of a company. Novel coronavirus pneumonia is the first to be affected by the conflict between the first and the regulatory authorities. The enthusiasm of US investors has promoted China’s short video service providers Kwai Kong and Coupang, a Korean electricity supplier company, to successfully launch this year’s listing.
Didi travel was founded in 2012 by the former member of Alibaba group. It clashed with Uber in China for many years, until the US company withdrew from the Chinese market in 2016 and sold its business in China to didi travel. The company is looking for capital to invest in technology, expand its presence in some international markets and introduce new products. Didi travel is planning to enter e-commerce and provide funds to enter Europe.
Didi travel is also seeking to use this advantage to expand into neighboring areas, from autonomous driving to electric vehicle business. The company said in its prospectus that its securities code is “didi”, but it has not yet finalized which securities market it will list on( Compiled by Tencent technology / Wuji)