The woeful IPO debuts of Lyft and Uber hurt the perceived valuations of other ride-hailing companies, including Chinese leader Didi Chuxing, which is privately held.
Now that Uber’s stock price is at least within striking distance of its price at the IPO—reflecting a possible recovery in the perception of the sector’s prospects—Didi is looking to add to its own coffers, according to the Wall Street Journal.
Didi, which already raised an unprecedented $22 billion as a private tech firm, according to Pitchbook, has billions of dollars of cash in the bank and isn’t in danger of running out this year. But given its recent growth slowdown and widening losses that delayed its plans for an IPO, there may be no downside of adding more capital if it can be had. WSJ pegs Didi’s hoped-for paper valuation at $62 billion. Uber’s market capitalization is close to $75 billion.