Didi raises $500m in round led by SoftBank’s second Vision Fund

China’s ride-hailing giant Didi Chuxing today announced that it has closed its first fundraising round at over US$500 million for its autonomous driving subsidiary. The round was led by SoftBank Vision Fund 2.

With the new funds, Didi will further invest in the research and development of autonomous driving technology and testing. It will also deepen industry cooperation and accelerate the deployment of autonomous driving services in China and abroad, the company said in a statement.

Didi claims the round is the single largest fundraise in China’s self-driving sector.

Didi’s autonomous driving fleets are performing testing in China and the US. / Photo credit: Didi Chuxing

Didi began to develop and test autonomous driving vehicles in 2016 and spun off its self-driving unit in August last year. It now aims to launch autonomous fleet operations in select locations as China looks to build a digital infrastructure network based on 5G, AI, and internet of things.

It also plans to further cooperate with global auto industry partners for the mass production of self-driving vehicles. Currently, Didi has open-road testing licenses in Beijing, Shanghai, and Suzhou in China and California in the US.

Didi’s autonomous driving unit works with auto solutions platform Xiaoju Automobile Solutions and Didi Finance. It aims to integrate mobility solutions, including smart charging networks, fleet maintenance service, and insurance programs for autonomous fleets, according to a statement.

With 550 million users across Asia, Latin America, and Australia, Didi provides transportation and life services including taxis, buses, enterprise solutions, bike-sharing, food delivery, and payments, among others.

Earlier this month, company president Jean Liu said in an interview that Didi’s core business is becoming profitable again, with ride volumes bouncing back to about 60% to 70% of its numbers before the pandemic.