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

A brand of ride-hailing large Didi Chuxing displayed on a constructing in Hangzhou in China’s jap Zhejiang province.

STR | AFP | Getty Photographs

Chinese language ride-hailing large Didi Chuxing on Thursday filed to go public in what could possibly be one of many largest tech IPOs of this yr, positioning giant shareholders Uber and SoftBank for a win.

The corporate reported $21.6 billion in revenue final yr. It additionally posted a revenue this previous quarter on $6.4 billion in revenue. Particularly, the corporate reported web revenue of $837 million earlier than sure payouts to shareholders, and complete web revenue of $95 million for the quarter.

Uber owns 12.8% of the shares in the corporate after promoting its Chinese language ride-hailing enterprise to Didi in 2016, whereas SoftBank’s Imaginative and prescient Fund holds 21.5%.

Between 2019 and 2020, Didi’s revenue shrunk nearly 10% because the Covid pandemic struck China exhausting final yr. Nonetheless, previous to the pandemic, revenue grew 11% between 2018 and 2019. Moreover, revenue has bounced again in the primary quarter because the pandemic restoration is in full swing, with 107% development in Q1 from the earlier yr’s quarter.

A few of the firm’s profitability in Q1 will be credited to features on investments of $1.9 billion associated to spin-offs and divestments.

By means of comparability, Uber reported a web lack of $108 million on revenues of $2.90 billion in its first quarter. For all of 2020, Uber’s web losses amounted to $6.77 billion on $11.14 billion in revenue.

Didi was most not too long ago valued at $62 billion following an August fundraising spherical, in accordance with PitchBook knowledge, and is backed by funding giants akin to SoftBank, Alibaba and Tencent. Bloomberg reported the corporate may have a $100 billion valuation on the time of its IPO.

The itemizing, which could possibly be one of many largest tech debuts globally this yr, comes as demand for ride-hailing and journey firms return because of a lower in Covid-19 instances and a roll out of vaccines. Its American counterparts, Uber and Lyft, have each mentioned they’re going to be worthwhile on an adjusted foundation by the tip of this yr, due to the restoration.

Didi acquired Uber’s China enterprise in 2016 in an advanced transaction that concerned each firms taking shares in one another. Didi mentioned it bought all of its shares in Uber in November and December of final yr.

Based in 2012, Didi mentioned it has 493 million annual energetic riders, and 15 million annual energetic drivers. Didi has been named to the CNBC Disruptor 50 checklist 4 occasions.

(The exact identify of the corporate as registered on the F-1 is Xiaoju Kuaizhi.) Goldman Sachs, Morgan Stanley and J.P. Morgan are underwriting.

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

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