While Didi controls as much as 80% of China’s ride-hailing market, its position is vulnerable after falling foul of the government following its US$4.4 billion US listing in June. It’s platform was removed from app stores in July, it has been ordered to strengthen user data protections and address the use of unlicensed drivers, and faces penalties ranging from a multi-billion dollar fine to a forced delisting or being taken under state control.
The ride-hailing unit of Zhejiang Geely Holding Group Co., which raised almost US$600 million ($812.0 million) earlier this month, is already in talks with investors for another funding round as it seeks to make ground on dominant market leader Didi Chuxing Inc.
The next round of fundraising may be completed in the first half of 2022, Cao Cao Mobility Chief Executive Officer Gong Xin said in an interview. That comes after the company raised 3.8 billion yuan ($795.1 million) from state-owned funds including Suzhou Xiangcheng Financial Holding Group and Suzhou High-Speed Rail New City Group.
