SoftBank, Uber, Tencent set to reap rewards from Didi IPO – ClearTips

After years of speculation, China’s ride-sharing behemoth, Didi Chuxing, has finally unveiled its IPO filing in the US, offering a glimpse into its money-losing history.

Didi did not disclose the size of her salary increase. Reuters reported that the company could raise about $10 billion at a valuation of around $100 billion.

According to the prospectus, Didi’s 38-year-old founder Cheng Wei owns 7% of the company’s shares and controlled 15.4% of his voting power prior to the IPO. Major shareholder SoftBank Vision Fund owns 21.5% of the company, followed by Uber at 12.8% and Tencent at 6.8%.

The nine-year-old company, which famously acquired Uber’s China operations in 2016, is now more than just a ride-hailing platform. It has a growing line of businesses such as bike-sharing, grocery, intra-city freight, financial services for drivers, electric vehicles and Level 4 Robotaxis, which it calls “the pinnacle of our design for future mobility” for its ability to reduce defines as. Cost and safety improvements.

Didi set up an autonomous driving subsidiary that in May last year banked $500 million from SoftBank. The unit now operates a team of over 500 members and a fleet of over 100 autonomous vehicles.

For the twelve months ending March, Didi served 493 million annual active users and saw 41 million transactions on a daily basis.

Didi was operating in the red from 2018 to 2020, when it ended the year with a net loss of $1.6 billion, but managed to turn the tide by posting a net profit of $837 million in the first quarter of 2021, which It recognized investment proceeds primarily from the dissolution of Chengxin, its cash-burning grocery conglomerate buyout initiatives and an equity investment settlement.

Revenue from the quarter also more than doubled year-over-year to more than $6.6 billion. China accounts for more than 90% of Didi’s revenue. The company has tried to expand its presence in a dozen foreign countries, such as Brazil, where it has bought 99 Taxis, a local ride-hailing business.

More than 97% of its mobility revenue in China came from ride-hailing between 2018 and 2020. Taxi hailing, chauffeurs and carpooling, a lucrative business that was revamped after two fatal accidents, made up a small part.

Didi plans to spend 30% of the proceeds from its IPO on shared mobility, electric vehicles, autonomous driving and other technologies. 30% will go towards its international expansion and the other 20% will be used for new product development.

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