Uber is on fire and it seems that there’s nothing that can slow down its pace. When people think that Uber cannot raise any more money, there’s a news about Uber funding amounting to Billions of dollars. Just after 5 months of raising $2 Billion in Jan 2016, Uber has broken its own record by raising another massive funding amounting to $3.5 Billion in a single round. As per the official announcement made by Uber on Wednesday, 1st June 2016, the money comes in from Saudi Arabia’s Public Investment Fund. This is the largest investment ever made in a private technology startup.
How will this $3.5 Billion funding help Uber
The oil rich nation investing in Uber should not come as a shock to many. Uber has a great market to capture in the middle east as many of these nations have a law where women cannot drive cars. According to Uber, 80% of their customers in middle east are women. This investment of $3.5 Billion will not only help Uber expand its base in Middle East & Africa but will also help it compete with Didi in China.
Uber is already present in nine countries in the Middle East region and says that this is one of its fastest growing market.
The latest valuation of Uber (as of June 2016) has made it to be worth $62.5 Billion, which again is the largest for any technology platform in the on-demand economy.
How the Investment came through?
Saudi Arabia & its kingdom was planning to transform the nation’s economy from a long time so that they are able to diversify into other fields apart from oil. Uber’s $3.5 Billion funding is just one step forward. It all started when David Plouffe, an Uber board member traveled to West Asia in March 2016 and was invited to the Saudi Fund for a briefing. Finally, on 1st June 2016, Uber announced that it has secured a whooping amount of $3.5 Billion in just one go.
This funding does not cash out any of Uber’s existing investors.