Uber rival Lyft is pitching investors on a new funding round and hopes to get at least $500 million, reports The Wall Street Journal (paywall) citing sources.
The $500 million fundraising round would value the ride-hailing service between $6 billion and $7 billion, the source said. This is slighty above $5.5 billion valuation when they last raised funding in January last year. A Lyft spokeswoman declined to comment to the publication.
Lyft's fundraising efforts have been ongoing for months, and the company retained Qatalyst Partners in part to assist them in raising a fresh round of cash, according to other sources with knowledge of the matter.
Rivals Uber and Didi, have raised so much money that Lyft now has limited options of finding new investors who can write big checks. Uber is valued at about $70 billion and Didi's valuation is about $35 billion after its merger with Uber's China operations in August.
Incidentally, Didi Chuxing had picked up a small stake in Lyft in September 2015, nearly an year prior to the merger with Uber's China operations.
Lyft has so far raised $2 billion from investors like Andreessen Horowitz, General Motors, Didi Chuxing, Alibaba and activist investor Carl Icahn. This includes a $1 billion round led by General Motors who pumped in $500 million in the company and Saudi Arabia's Kingdom Holding Company that invested $100 million.
Incidentally, Didi Chuxing had picked up a small stake in Lyft in September 2015, nearly an year prior to the merger with Uber's China operations.
Lyft has so far raised $2 billion from investors like Andreessen Horowitz, General Motors, Didi Chuxing, Alibaba and activist investor Carl Icahn. This includes a $1 billion round led by General Motors who pumped in $500 million in the company and Saudi Arabia's Kingdom Holding Company that invested $100 million.
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