Uber is pouring $1 billion a year into the Chinese market and now the country’s largest ride-sharing service, Didi Kuaidi, is picking up another $1 billion to hold onto its marketshare.
Didi Kuaidi is raising around $1 billion in a new funding round, according to a person close to the situation.
Terms of the new funding have not been revealed which means a valuation could not be given.
The Wall Street Journal reported that the new round would value the Chinese company at more than $20 billion.
Didi Kuaidi raised $3 billion in September, valuing the company at $16.5 billion.
The rise sharing service holds a large majority of the market in China and is backed by tech giants Alibaba and Tencent, among others.
A spokeswoman for Uber said the company plans to expand from the 40 Chinese cities where it operates to more than 100 by the end of the year.
Rather than break into the US market to compete directly with Uber, Didi Kuaidi has partnered with Lyft in the US and GrabTaxi in Southeast Asia, to expand its reach through travel partnerships.