Uber investor China Life double-dips with $600m funding for Didi

A junction in Shanghai. Photo credit: Carlos ZGZ.

Chinese ride-hailing app Didi Chuxing today announced a US$605 million investment from China Life, the nation’s biggest insurance company. It’s the biggest investment that the company has received since its hefty US$1 billion from Apple last month.

The investment is in the form of US$300 million in equity (i.e. a normal investment) as well as US$305 million in “a long term debt investment,” invested in Chinese yuan, according to a statement released by the company.

The Uber angle

This isn’t China Life’s first dive into the world of ride hailing – the state-owned company is also an investor in Uber.

In January, a group of Chinese companies invested a total of US$2 billion into Uber’s global business, and China Life was among them. Uber’s China wing fundraises separately.

With this latest exchange, though, it looks like China Life may be betting for more than just a solid return on its investment. In a statement, the companies said, “Didi Chuxing and China Life will join hands in developing innovative business models for insurance,” financial solutions, and more.

The companies also mention the prospect of investment collaboration “in China and beyond,” which winks at the possibility of China Life’s funds finding their way towards Didi’s budding anti-Uber alliance that includes the likes of Grab, Ola, and Lyft.
likes of Grab, Ola, and Lyft.