Uber increases funding round by $1B to meet investor demand
- 20 February, 2015 04:19
The prospect of government oversight and steady stream of security issues facing Uber haven't scared investors from the ride-hailing company, which will expand its latest round of venture funding by US$1 billion.
In December, Uber initially raised $1.2 billion during a funding round. At that time, Uber estimated there was room for an additional $600 million in investments.
Investor interest, though, proved greater. To meet the demand, Uber will expand that round and issue approximately 30 million additional shares valued at $33.31, according to documents filed Wednesday with the Delaware secretary of state. Uber is based in San Francisco and incorporated in Delaware.
The latest expansion brings the total amount of money Uber raised from the funding round to $2.8 billion, more than double what it originally raised. That figure includes the $600 million additionally raised earlier in the round. The extra cash injection doesn't increase Uber's valuation, which is still $40 billion.
Overall, Uber has raised nearly $6 billion since it launched in 2009.
Cash from the most recent funding round would be used to expand to Uber's Asia-Pacific operations, CEO Travis Kalanick said at the time.
While investors are keen on Uber, governments aren't as excited about the ride-hailing startup. City officials in Delhi banned the company while police investigated claims that an Uber driver allegedly raped a female customer.
In December, South Korean officials sued Kalanick for supposedly disregarding the country's transportation laws. Car-hailing companies will eventually have to obtain a special state license to operate in Massachusetts. Over the next six months, state officials are developing guidelines on how to grant those permits.
Taxi companies have also spoken out against Uber, saying its lack of regulations give it an unfair advantage. Meanwhile, competitors Lyft and Sidecar are ramping up operations. Sidecar, for example, expanded its same-day delivery service in the U.S. earlier this month.