Didi Chuxing Technology the ride-hailing company based in China said on Thursday it raised more than $4 billion that were destined for overseas expansion and areas like artificial intelligence, as it ratchets up its competition with Uber.
The new round of fundraising gives Didi a value of $50 billion and involved Mubadala Capital a state fund of Abu Dhabi, said those familiar with the deal. Mubadala made no comment about the deal.
Softbank Group, an existing investor, also took part in the most recent funding, said a spokesperson for the company, which is based in Japan, but declined to say the size of the company’s latest investment.
With a big cash reserve, Didi is planning to increase its investments in AI technologies and talent and the funds will help bring in more diversified and innovative transportation services to more communities across the globe.
Didi expanded rapidly overseas the last year since completing its purchase in 2016 of Uber’s China business to become the dominant player domestically.
Earlier in December, it was reported that Didi had plans to enter Mexico in 2018, in what would be the first operations overseas by the Chinese company not managed with a local business partner.
Didi announced on Wednesday that it was looking to enter the neighboring Taiwanese market, and that it had authorized a franchise operator to carry out research in Taiwan on its behalf.
The China based ride-hailing giant has invested as well in several of the companies competing worldwide with Uber including Lyft which is based in the United States, Ola in India, 99 in Brazil, Grab in Singapore, Taxify in Estonia, and Careem which is in different locations across the Middle East.
Besides Softbank, other investors in the previous rounds of funding with Didi included Alibaba Group Holding and Apple Inc.
Earlier a report was released that said the latest round of fundraising by Didi pushed the ride-hailing company’s cash reserves to over $12 billion from a balance of just $3.5 billion in 2015.
On Wednesday, Didi’s big rival Uber was hit with a big setback in the European Union, when the 28-nation bloc’s highest court ruled that it was a taxi company and could be regulated by local and state authorities as such.
The ride-hailing industry has exploded with expansion the past two years as its popularity has grown worldwide.