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Ride-hailing giant Didi Chuxing close to raising US$1.5 billion for on-demand trucking unit
- Didi Freight first launched its on-demand logistics service in Chengdu and Hangzhou in June and has since expanded to eight cities
- The service is taking on larger rivals including Full Truck Alliance and Huolala in an already crowded market
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Ride-hailing giant Didi Chuxing Technology Co is close to finalising a US$1.5 billion round of funding for its on-demand trucking unit from investors including Singapore’s Temasek Holdings, surpassing its fundraising target as investors count on a Chinese economic recovery to fuel shipping.
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Jack Ma’s Yunfeng Capital and IDG Capital will join the financing for Didi Freight, an Uber-like trucking service, a person with knowledge of the matter said. Ma is the founder of Alibaba Group Holding, the parent company of the South China Morning Post.
Other investors in the unit’s debut round include the investment arm of real estate giant Country Garden Holdings Co, a unit of Citic and Hidden Hill Capital, the person said, asking not to be identified discussing a private deal. The total amount exceeded its target of about US$400 million by severalfold.
A Didi representative had no immediate comment on the latest fundraising.
China’s economy roared back to pre-pandemic growth rates in the fourth quarter after its industrial engines fired up to meet surging demand for exports. That boom is straining a domestic logistics network already taxed by a post-Covid 19 resurgence in e-commerce.
Start-ups like Full Truck Alliance – backed by SoftBank Group Corp – and technology giants such as Alibaba are now introducing technology to try and streamline the shipping process, connecting merchants with truckers and delivery firms.
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