Anticipated to be among the largest tech IPOs of 2021, Didi IPO could bring the business a $100 billion evaluation whilst increasing $10 billion. )
Didi Chuxing, based in 2012 by Cheng Wei, filed for an Initial Public Offering (IPO) under its formal title Xiaoju Kuaizhi Inc.. It has grown into a market pioneer in the mobility technology sector in a short time, having acquired its biggest rival, Uber’s China unit, in 2016. In return, Uber now has a 12.8% stake in Didi. Other high-profile investors comprise technology giants SoftBank Group Corp with a 21.5% stake in the business, also Tencent Holdings Ltd, that retains 6.8percent of the provider. Despite constant rivalry from the ride-hailing industry, Didi has managed to stay dominant through its constant expansion in providing related services using top-notch technology.
Like other industries disrupted from the pandemic, Didi, also, suffered huge losses estimated at $1.6 billion to 2020. Its net profit contracted by nearly 10% between 2019 and 2020, thanks to the pandemic that reduced passengers and affected business across countries. However, the initial quarter of 2021 attracted good news since it saw an astounding 107% rise and doubling of earnings, making a profit of $30 million. Like major technology startups, Didi has seen declines in its 8 years of existence, however, it still reins the country’s ride-hailing industry.
Didi Chuxing has its own operations in 15 countries across Africa, South America, Asia and Europe, such as China, although a huge customer base contains the Chinese people. In addition to supplying app-based transportation facilities, Didi also provides food delivery, financial and automobile services. The Beijing based company has also worked in partnership with BYD Co. Ltd. , a Chinese automobile manufacturer, to create electric cars, especially designed for their ride-hailing small business. Not just that, the company has also been a part of their strategic partnership with Guangzhou Automobile Industry Group to design, build and fabricate autonomous electrical vehicles.
In the Founder’s Letter submitted alongside the filing, CEO Cheng possessed the organization’s errors and failings, especially the rape and deaths of two female passengers and the plight of drivers that face unfair treatment. The letter mentions the solutions adopted to overcome the shortcomings that have redesigning over 200 app features, setup of safety-enhancing mechanisms and apparatus and the constitution of a SWAT Team that would respond to all safety events on a real time basis.
With such a revaluation and advancement of present servi