China taxi-hailing app Didi Kuaidi raises $2 bn

China's homegrown <g data-gr-id="25">taxi-hailing</g> app service giant Didi <g data-gr-id="24">Kuaidi</g> on Wednesday said it has raised $2 billion in two weeks, boosting its cash reserves to offer stiff competition to US-based Uber.

With the newly-added $two billion, Didi <g data-gr-id="47">Kuaidi</g> will increase its cash reserves to above $3.5 billion, state-run Xinhua news agency reported about the fundraising round that came within a month after reports of Uber planning to invest over $1 billion besides beginning operations in 50 Chinese cities emerged.

Backed by technology giants like Alibaba and Tencent, it had previously raised the financing target and is now looking to pool a further "few hundred million dollars" from new investors before the final closing in the coming month due to strong demand from existing and new investors, the report said. 

"The fact that global investors are eager to participate in this fundraising round shows their confidence in the development of our company," Cheng Wei, chief executive officer and chairman of the company, said in a statement.

Didi <g data-gr-id="48">Kuaidi</g> will use the raised amount to strengthen its market position, develop new services, improve technology and data research and enhance user experience, the statement said. Existing stakeholders such as Alibaba, Tencent, Temasek and Coatue Management participated in the fundraising, while Capital International Private Equity Fund, Ping An Ventures, and several other globally renowned investors have invested in this round of fundraising, the company said in a statement.

The fundraising by the company, that holds the largest market share of car-hailing apps in China, started after <g data-gr-id="46">Kaudi</g> merged with another local successful taxi app Didi Dache. Didi Kuaidi had previously raised the financing target and is now looking to pool a further few hundred million dollars from new investors before the final closing in the coming month due to strong demand from existing and new investors, state-run Xinhua news agency reported. With millions of people using taxi-hailing apps in China every day, competition for ride-hailing market is growing.