(March 4): Didi Global Inc is seeking fresh capital for its autonomous driving unit that could value it at about US$5 billion (RM22.35 billion), people familiar with the situation said, as Chinese technology firms ride a wave of investor enthusiasm.

Didi Autonomous Driving plans to raise several hundred million dollars, and is in talks with prospective investors including a Beijing-based fund to gauge interest, the people said, asking not to be identified discussing a private matter.

Didi’s autonomous driving unit operates a self-driving fleet of over 200 vehicles that have conducted trials in Beijing, Guangzhou and Shanghai. The Chinese ride-hailing firm unveiled its first concept robotaxi, the Didi Neuron, in April 2023.

Didi may use the proceeds to continue developing autonomous-driving technologies and speed up mass production of its robotaxi, one of the people said. Deliberations are ongoing, and the company could still decide against pursuing a deal, the people said. 

A representative of Didi didn’t immediately respond to a request seeking comment.

Autonomous driving and machine learning have been at the forefront of a recent rally in China’s equity markets, initiated by the arrival of start-up DeepSeek’s low-cost R1 model. Chinese President Xi Jinping’s backing has also prompted investors to re-evaluate the nation’s tech companies and their growth prospects. 

Self-driving entrepreneur James Peng has become a billionaire, after a surge in shares of his robotaxi start-up Pony AI Inc, which has a market value of US$5.3 billion. Pony AI is up about 16% since its US initial public offering in November.

WeRide Inc, which has a robotaxi service agreement with Uber Technologies Inc in Abu Dhabi, saw its shares spike 135% in mid-February, after Nvidia Corp disclosed an investment in the Chinese firm. 

Didi Autonomous Driving raised US$298 million from investors led by Guangzhou Automobile Group Co in a Series C funding round in October, according to a statement on its official WeChat account. Other backers of the company include SoftBank Vision Fund, IDG Capital, CCB International and alternative investment firm CPE. 

Uploaded by Tham Yek Lee