Uber CEO Travis Kalanick / Getty Images
The company that already received $1.2 billion in the past six months, is looking to raise for funds.
The company that already received $1.2 billion in the past six months, is looking to raise for funds.
The company hasn’t completed its fund raising for this year by a long shot. The company from San Francisco is known for its car hailing services. It is now in talks with investors so that they generate another $1 billion.
Tim Bradshaw reported that the company is looking to accelerate its international expansion and that is why they are looking at new investors to invest another $1 billion into the company.
Some insiders claim that the company wants to raise money at a higher valuation than the time they secured $17 billion. Uber is currently the highest valued private company in Silicon Valley.
When the company talks about raising more funds for the company, it raises a lot of question about how much further this company’s valuation can rise. If the fund raising is a success, it would give Uber a $2 billion war chest. And that will include the funds they already have in the reserves.
If all of the fund raising is a success, we will see them expanding into Asia, Latin America, Eastern Europe and Africa. They will also be able to build new transportation and logistics services. They recently had experiments with the New York bicycle couriers.
This fundraising will really test the investors and we will get to see their limits. This fundraising will show us how much the investors believe in the company’s objectives because let’s face it billionaires investing billions in a company is going to take some guts.
Some investors are concerned about the start-up cost of the projects because those projects are consuming a lot of their cash. Uber is also going to making a balance sheet after strong demand by the investors. This balance sheet is going to be proportionate to the scale of the business.
Uber has started effecting companies with less resources. The cost of building and maintaining projects has gone sky high. As Uber is going to be expanding in other countries, it will face some tough competitors from different countries.
If this new funding is successful, Uber could be evaluated at $25 billion. Financial time reported that Uber might be able to get the $1 billion. Fidelity Investments and BlackRock have already invested in the company and it is unlikely they will invest again. The company was evaluated at $3.5 billion in August 2013 and $17 billion in June 2014.
Since being founded back in 2009, it has pocketed $1.5 billion in capital. The company CEO believes that investment coming in will help them with their aggressive global expansion and it would also fend off competitors like Lyft. The company also revealed that they have hired Tom Fallows who was the creator of Google Express. Google Express helps people with on demand shopping and delivery services.
