Update: The investors in the round include Middle East sovereign wealth fund Qatar Investment Authority, hedge funds Valiant Capital Partners & Lone Pine Capital, and VC firm New Enterprise Associates as per a source-based Wall Street Journal report.
Earlier: Online cab service Uber has raised $1.2 billion from undisclosed investors at a valuation of $40 billion, with the option of raising an additional $600,000. The company plans to use the funds to further expand in the Asia Pacific region.
Uber has so far raised $2.7 billion, including $1.2 billion in a Series D round if funding led by Fidelity Investments in June 2014, $258 million in August 2013, $37 million in December 2011, $11 million in February 2011, $1.3 million in October 2010 and $200,000 in August 2009.
Investments in the online cab service segment in India
This comes at a time when Uber is reportedly looking to invest $400 million to expand its India operations & both of Uber’s primary competitors in India, Olacabs & TaxiForSure, have raised funding in the past few months. Olacabs had raised $210 million from SoftBank Corp at a valuation of close to $1 billion in October, and it had raised Rs 250 crore from Steadview Capital & Sequoia Capital with participation from existing investors Tiger Global and Matrix Partners in July. Bangalore-based TaxiForSure had also raised an undisclosed amount of funding from Accel Partners US and existing investors in August, after securing $10 million investment from Bessemer Venture Partners, Accel Partners, Helion Venture Partners & Blume Ventures in May.
Uber’s troubles in India
Last month, Uber had tied-up with Paytm to enable users to pay for their rides through Paytm’s prepaid wallet. This was required because Reserve Bank of India (RBI) had issued a directive that Card Not Present (CNP) transactions for purchases of goods and services in India had to be processed through Indian banks and payments needed to be made in Rupees in August this year. Recently, Uber pitched for a 45-day extension of the deadline to comply with the Reserve Bank of India’s online payments rules in order to provide its existing riders sufficient time to switch over to the Paytm wallet powered payment system.
Earlier this year, Indian tax authorities had asked Uber’s Indian subsidiary to provide details on its Indian operations, since it believed that Uber is liable to pay service tax to the government. Uber, however, passed the onus of paying service tax to cab drivers as it doesn’t directly own the cabs or employ the drivers.