According to its latest IPO filing, Chinese ride-hailing company Didi revealed a loss of $1.6 billion for 2020 in its latest IPO filing as it moves ahead with its plan for accelerating its expansion as the business market rebounds in China after the Covid-19 pandemic media reports. While filing a prospectus for its upcoming blockbuster US IPO, the company revealed that they have incurred heavy losses in recent years but now there is a solid chance of getting closer to profitability.
CEO Will Wei Cheng and president Jean Qing Liu mentioned in the prospectus, about its planned US IPO, which plans to arrive as early as the third quarter of this year, that the company truly aims to become a global tech giant.
In recent months, the company has been trading at a valuation of about $95 billion on the secondary market. Last year, the company raised a funding of $62 billion, according to media reports. Didi’s largest shareholders include SoftBank’s Vision Fund, Uber Technologies, and Tencent Holdings. These three companies have a combined stake of 41 percent and the company’s co-founder Will Wei Cheng holds 7 percent of the shares. Softbank’s stake of 21.5 percent could be worth as much as $15 million or more at the targeted valuation range, but there is a chance it could be diluted in the offering.
While Didi has marked its presence in more than 15 countries, most of its revenue still comes from its China mobility business. The company reported revenue of $21.6 billion in 2020