China's Didi Said to Weigh Raising Billions in Fresh Capital
- Not all backers on board because of possible stake dilution
- Didi said to mull raising at least $3 billion, one person says
Didi Chuxing Faces New Hurdles in China
Didi Chuxing, the ride-hailing service that acquired Uber Technologies Inc.’s China business last year, has held informal talks with investors about raising billions of dollars to buy more time to build a profitable business model, according to people familiar with the matter.
Didi’s investors, numbering more than 100, are divided over whether more capital is needed now, said the people, asking not to be named because the matter is private. Fundraising advocates argue more cash will help Didi develop autonomous driving technology and create a lucrative platform for services amid tighter ride-hailing regulations. Skeptics contend the firm has enough cash given the $10 billion it had amassed last year and that raising more equity will only dilute existing shareholders, the people said. Didi, with backing from Apple Inc. and Tencent Holdings Ltd., hasn’t notified some investors because it hasn’t decided whether to proceed, the people said.