Tech

Didi Chuxing files for IPO generated $ 6.4 billion in revenue in the first quarter

Ride Hailing Giant Didi logo on a building in Hangzhou, Zhejiang Province, eastern China.

STR | AFP | Getty Images

China’s ride-hailing service giant Didi applied Thursday to unveil what could be one of the biggest tech IPOs of the year, leading major shareholders Uber and SoftBank to victory.

The company reported revenue of $ 21.6 billion last year. Revenues for the last quarter were $ 6.4 billion. Specifically, the company reported a net profit of $ 837 million prior to certain payments to shareholders, with a quarterly comprehensive net profit of $ 95 million.

After selling its Chinese ride-hailing service business to Didi in 2016, Uber owns a 12.8% stake in the company and SoftBank’s Vision Fund owns a 21.5% stake.

Between 2019 and 2020, Didi’s revenue shrank by almost 10% as last year’s Covid pandemic hit China hard. However, before the pandemic, revenue increased by 11% between 2018 and 2019. In addition, the pandemic’s recovery is in full swing, with earnings recovering in the first quarter, up 107% year-on-year in the first quarter.

Part of the company’s profitability in the first quarter will be credited to the return on the $ 1.9 billion investment associated with spin-offs and sales.

By comparison, Uber reported a net loss of $ 108 million with revenue of $ 2.9 billion in the first quarter. Throughout 2020, Uber’s net loss reached $ 6.77 billion against $ 11.14 billion in revenue.

According to PitchBook data, Didi has recently been valued at $ 62 billion after the August funding round and is backed by major investors such as Softbank, Alibaba and Tencent. Bloomberg reported that the company’s valuation could reach $ 100 billion at the time of the IPO.

This list, which could be one of the world’s largest technology debuts this year, is due to the return of demand from ride-hailing service companies and travel agencies due to the reduction in Covid-19 cases and the deployment of vaccines. Its American counterparts, Uber and Lyft, both say they will make adjustments by the end of the year, thanks to the recovery.

Diddy acquired Uber’s Chinese business in 2016 in a complex transaction in which the two companies acquired each other’s shares. Diddy said he sold all of Uber’s shares in November and December last year.

Founded in 2012, Diddy said it has 439 million active riders and 15 million annual active drivers annually. Diddy has been named four times on the CNBC Disruptor 50 list.

(The exact name of the company registered in F-1 is Xiaoju Kuaizhi.) Goldman Sachs, Morgan Stanley and JP Morgan are underwriting.

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Didi Chuxing files for IPO generated $ 6.4 billion in revenue in the first quarter

Source link Didi Chuxing files for IPO generated $ 6.4 billion in revenue in the first quarter

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