Lyft raises $600 million in new funding
With the possibility of raising even more, to reach $1 billion 🤑
Posted on June 27, 2018 6:22 PM.
Lyft has raised $600 million in new funding led by existing investor Fidelity at a valuation of $15.1 billion post-money, up from $11.7 billion at the previous round.
The company’s value has more than doubled in the past 14 months.
In addition to Fidelity, Senator Investment Group LP is joining the round. The group is one of Lyft's largest investors, investing over $800 million into Lyft.
The round could expand to up to $1 billion, says Lyft, but it would want to have strategic investor come on board.
Lyft has spent the past year raising their new round, but they're not raising money because they need it, says Lyft.
They still have $3 billion in the bank, but with Lyft looking to acquire bike-sharing company Motivate (the company behind Ford GoBikes and CitiBike), ...
... rapidly expanding their US and Candian presence, and developing their self-driving car program, it can be costly. It's not all for nothing though. Lyft's market share has increased from 22% to 35% since January 2017. As Lyft raises more money, Uber, who is valued at $62 billion, is preparing for an IPO sometime in the latter half of next year.
Financial TimesShannon Bond
To prepare, Uber has cut losses and sold $1.25bn in new shares to SoftBank in January.
In total, Lyft has raised $5.1 billion since its inception. Other investors from previous rounds include AllianceBernstein, Baillie Gifford, KKR, Janus CapitalG, Rakuten, and Ontario Teachers’ Pension Plan.
Interested in product and tech related news? Check out the Sip News app by Product Hunt. Every weekday, Sip surfaces the most exciting and essential tech stories of the day. You can download it now for iOS or Android.
Sip News Summaries
The most important tech stories, curated daily.