Chinese car-hailing app Didi Chuxing is assessing whether to accept a $6 billion investment from SoftBank Group Corp., Bloomberg News reported March 28, citing sources familiar with the matter.
Existing investors Tencent Holdings Ltd. and Apple Inc. are considering to join the funding round on a pro rata basis to avoid the dilution of their stakes in Didi Chuxing. Apple earlier invested $1 billion in the Chinese startup.
The regulatory challenges facing Didi Chuxing may lead the startup to defer its planned IPO, the report said, citing sources. Didi Chuxing has raked in about $10 billion of cash and equivalents in 2016. It has more than 100 investors, also including Alibaba Group Holding Ltd.
In August 2016, Didi Chuxing purchased the China operations of rival Uber Technologies Inc., which gave Uber a 5.89% stake in the combined entity and a 17.7% stake in Didi.