The very-well-capitalized mobile transportation company Uber is likely to raise even more money, according to sources familiar with the company’s plans.
New Uber Funding Round Could Value the Company at $25 Billion
It’ll use the pile of money to expand and fend off rivals -- same as it ever was.
Asa Mathat
The company recently set out to raise a new round of funding with a valuation that could reach $25 billion.
This is the same round that the Financial Times reported on today, saying Uber could raise as much as $1 billion in cash.
It’s likely to come from existing investors including Fidelity Investments and BlackRock, although there could be new investors too once all is said and done.
San Francisco-based Uber had previously been valued at $3.5 billion in August 2013 and $17 billion in June 2014. Since being founded five years ago, the company has banked about $1.5 billion in capital.
It’s unclear why Uber would want more money so soon, but the company’s fame and infamy has only grown over the past five months and its CEO Travis Kalanick has talked about arming the company with enough cash to keep up its aggressive expansion and also fend off competitors like Lyft.
While Uber does have substantial revenue, it’s still early in the process to go public, though many expect it eventually will. But sources said the company is looking to add long-term investors who would be the sort to stick with it beyond an IPO.
Uber now operates in 45 countries and has expanded beyond pure rides. And, today the company confirmed it hired Tom Fallows, the creator and head of Google Express, that company’s ambitious on-demand shopping and delivery service. Uber also recently hired former Lyft COO Travis VanderZanden, which was followed by a lawsuit by Lyft in which it alleged he stole company documents.
An Uber spokesperson declined to comment.
This article originally appeared on Recode.net.
