Uber China Draws Investors for Its $1 Billion Fundraising Round

Uber China Draws Investors for Its $1 Billion Fundraising RoundSan Francisco, California based Uber Technologies Inc., closed its $1 billion fundraising round for its China arm, according sources. Reportedly, the investors in the fund raising included Baidu Inc., a unit of Citic Group Corp. in China and China Life Insurance Co. The sources also said that Uber itself is also investing $300 to $500 million in the Chinese arm to reflect confidence in the unit.

According to the source, Ping An Group, the Chinese financial conglomerate's investment arm and Hillhouse Capital also took part in the fund raising event but did not invest in the China unit of Uber. These companies have a stake in Uber's US-based business.

Since the matter was confidential Uber's spokeswoman declined to comment. As Uber closes its $1 billion fund raising round, the company is now ready to continue its competition with rival Didi Kuaidi, a Chinese car-hailing app based service. Last month, Didi Kuaidi raised two billion during a fundraising round.

Both the companies are spending greatly on subsidies in order to cut cost for the users and boost the earnings of drivers for their services.