Didi Chuxing is a Beijing-based mobile platform that offers transportation services with just a few simple clicks. It is a ride-sharing company that operates in China and according to recent reports, Didi has filed to go public as one of the largest technology Initial Public Offering of the year.
The Chinese company recorded a small percentage of profit in the past quarter on USD 6.4 billion in revenue and in its filing, the company has listed a net income of USD 837 million inclusive of certain payouts to be paid to the shareholders.
Speaking of shareholders, Uber and SoftBank are the largest shareholders in Didi Chuxing and filing for one of the biggest IPOs of the year, puts these shareholders in a winning position. As mentioned in a report by CNBC, the numbers on the company are quite expressive of its financial position in the past quarter and overall.
Back in 2020, the company recorded total revenue of USD 21.6 billion. This year, the net income of Didi amounts to USD 837 million before paying out certain dues to the shareholders. Other than this, in the past quarter, the records have shown a profit of USD 6.4 billion in revenue. A comprehensive net income for this past quarter reported by Didi equals USD 95 million and this is just for the past quarter.
The COVID-19 pandemic has hit the world’s transportation and ride-sharing businesses very hard and China is no different. Last year i.e., 2019-2020, as the onset of the pandemic began, Didi’s business went to a loss of approximately 10%. However, as the recovery initiated, the company returned back in full swing with a recorded growth of 107% in 2021’s first quarter as compared to the Q1 of the previous year.
As Didi Chuxing recovered some cash worth USD q.9 billion through divestments and spin-offs, the company’s profitability managed to stay afloat during this past quarter and this infusion of funds can be well regarded for the company’s profits.
SoftBank’s Vision Fund holds 21.5% of the Chinese ride-sharing company’s stakes and Uber, on the other hand, is the holder of 12.8%. According to recent reports by PitchBook data, Didi Chuxing has been valued at USD 62 billion following the company’s fundraiser back in August. The company’s profile enlists Tencent, Alibaba, SoftBank and more as the company’s biggest investors.
Furthermore, It is estimated that the post-Initial Pubic Offering valuation of the company could amount to USD 100 billion, making it the biggest technology IPO of the year, says Bloomberg.