The freight business of Didi Chuxing, China’s most popular ride-hailing app, may tap investors for additional capital after its debut fundraising drew about $3 billion in bids, highlighting strong demand for exposure to the sector, reported the Financial Times.
Didi Freight initially planned to sell up to $400 million of equity in December, according to FT sources directly familiar with the situation, but is now considering raising further funds after investors lodged bids for the round worth seven times that amount.
The additional fundraising could be carried out this month, the sources said, adding that the plans were not yet finalized. The funds would be used to significantly expand Didi Freight’s presence across big cities in China.
Didi Freight matches China’s vast pool of self-employed truck drivers with jobs such as goods deliveries and home removals. The majority of freight in China travels by road and investors have been drawn to those internet companies that they believe can boost the industry’s efficiency.