Uber’s Total Funding Nears $10bn
Financial Times: Uber’s latest financings will bring its total funding to $10bn, setting a new record for a US tech company before it goes public, as it closes in on a new credit line and equity round.
Much of that equity and debt has been raised in the past six months, as the San Francisco-based car-hailing company takes advantage of huge investor appetite for its fast-growing business.
The funds will go towards funding its costly expansion to more than 300 cities around the globe. The company is also facing mounting legal fees as it deals with regulatory challenges, and is investing heavily in technological innovations such as driverless cars.
Uber’s financial firepower is unprecedented in Silicon Valley history, far exceeding the sums raised by Facebook or Google before their initial public offerings.
Its fundraising shows how an abundance of investor cash is allowing US technology companies to wait longer than ever to list on public markets and opt instead for raising capital from private sources.
It emerged late last week that Uber was close to securing a $2bn credit line from a group including several of the world’s biggest banks, such as Morgan Stanley, Deutsche Bank and Goldman Sachs. It pursued the deal after receiving more interest from lenders than it expected when it began talks for a $1bn facility last month.
One person familiar with the situation confirmed the plans, which were previously reported by the Wall Street Journal. Uber declined to comment on its financing.
Uber is also seeking another $1.5bn in equity funding at a valuation of about $50bn, people familiar with its plans have said. This week it will set out on a further round in addition to the $1.5bn, focused on China.
Uber plans to spend $1bn this yearto establish itself in dozens of Chinese cities, according to a leaked memo to existing investors obtained by the Financial Times this month. Read the full article