Didi Chuxing files for IPO, booked $6.4 billion revenue in Q1

The emblem of the driving large Didi Chuxing is displayed on a constructing in Hangzhou, east China’s Zhejiang Province.

STR | AFP | Getty Pictures

Chinese language automotive rental large Didi Chuxing on Thursday filed for an preliminary public providing in what could possibly be one of many largest tech IPOs of the yr, placing main shareholders in Uber and SoftBank to the win.

The corporate recorded revenues of $21.6 billion final yr. It additionally posted a fourth-quarter revenue of $6.4 billion in income. Particularly, the corporate reported internet revenue of $837 million earlier than sure funds to shareholders, and complete internet revenue of $95 million for the quarter.

Uber owns a 12.8% stake within the firm after promoting its Chinese language taxi service enterprise to Didi in 2016, whereas SoftBank’s Imaginative and prescient Fund owns 21.5%.

Between 2019 and 2020, Didi’s income shrank by about 10% because the Covid pandemic hit China laborious final yr. Nevertheless, previous to the pandemic, income grew 11% between 2018 and 2019. Moreover, income rebounded once more within the first quarter with the pandemic restoration in full swing, with 107% development within the first quarter of the prior yr.

A few of the firm’s first-quarter earnings may be attributed to $1.9 billion in funding good points associated to spin-offs and divestitures.

By comparability, Uber reported a internet lack of $108 million on income of $2.90 billion within the first quarter. For the total yr of 2020, Uber had a internet lack of $6.77 billion on income of $11.14 billion.

Didi was lately valued at $62 billion after a fundraising spherical in August, in accordance with PitchBook information, and is backed by funding giants resembling SoftBank, Alibaba and Tencent. Bloomberg reported that the corporate could have a valuation of $100 billion on the time of the IPO.

The record, which could possibly be one of many largest tech emergence globally this yr, comes with a resurgence in demand for carriers and journey corporations as a consequence of a drop in Covid-19 instances and the discharge of vaccines. Each its US counterparts, Uber and Lyft, have stated they’ll flip earnings on an adjusted foundation by the tip of this yr, because of the restoration.

Didi acquired the Uber enterprise in China in 2016 in a posh deal that concerned the 2 corporations partnering with one another. Didi stated it offered all of its shares in Uber in November and December of final yr.

Didi, which was based in 2012, stated it has 493 million yearly lively riders, and 15 million yearly lively drivers. Didi has been named to the CNBC Disruptor 50 record 4 occasions.

(The corporate’s actual title as registered on F-1 is Xiaoju Kuaizhi.) Goldman Sachs, Morgan Stanley and JP Morgan are underwriting.

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