Home / Business / Didi Chuxing files IPO, earns $6.4 billion in Q1

Didi Chuxing files IPO, earns $6.4 billion in Q1

Logo of the giant Didi Chuxing called buses. Exhibited on a building in Hangzhou Zhejiang Province east of china

STR | AFP | Getty Images

Didi Chuxing, China’s largest bus operator Filed publicly in one of the biggest tech IPOs of the year. By positioning major shareholders like Uber and SoftBank to win

The company reported $21

.6 billion in revenue last year. It also made a profit in the past quarter with revenue of $6.4 billion. especially The company reported net income of $837 million before partial payments to shareholders. and total net profit of $95 million for the quarter.

Uber owns 12.8 percent in the company after selling its Chinese ride-hailing business to Didi in 2016, while SoftBank’s Vision Fund owns 21.5 percent.

Between 2019 and 2020, Didi’s revenue fell nearly 10% due to the coronavirus pandemic in China last year. Revenue rose 11% between 2018 and 2019. Revenue also recovered in the first quarter due to the massive pandemic resurgence, with 107% growth in Q1 from last year’s Q1.

Some of the company’s profitability in Q1 could be credited to $1.9 billion in investment gains related to the split and divestiture.

In comparison, Uber reported a net loss of $108 million on revenue of $2.90 billion in the first quarter. Throughout 2020, Uber’s net loss was $6.77 billion on revenue of $11.14 billion.

Didi was most recently valued at $62 billion after an August funding round, according to PitchBook data and backed by investment giants such as SoftBank, Alibaba and Tencent. Bloomberg reported that the company could be valued at $100 billion at the time. IPO

The list could be one of the biggest tech launches in the world this year. This happened as demand for ride-hailing services and travel agencies returned. As the number of coronavirus cases declines and vaccines start rolling in, Uber and Lyft, the two American companies, say they will be profitable when adjusted for thresholds by the end of the year. due to recovery

Didi acquired Uber in China in 2016 in a complex transaction in which the two companies had to hold each other. Didi said it sold all of its stake in Uber in November and December last year.

Founded in 2012, Didi has 493 million annual drivers and 15 million annual drivers. Didi has been named on the CNBC Disruptor 50 list four times.

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

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