Uber is accelerating its race to expand globally and branch into services beyond picking up and dropping off riders.
Uber Technologies is looking to raise as much as $2.1 billion in a financing round that would value the car-booking company at $62.5 billion, said people familiar with the matter.
The new valuation will make it larger than stalwarts of the S&P 500 including Dow Chemical, BlackRock and Netflix, but still smaller than Apple, Starbucks, Nike and Facebook.
The new funding shows Uber is accelerating its race to expand globally and branch into services beyond picking up and dropping off riders. The company has tested food and package delivery in some cities, and is working on new technology, such as self-driving cars.
Uber is spending aggressively to expand throughout Asia, particularly in China, where it expects to spend $1 billion, according to a June letter to investors from Chief Executive Travis Kalanick.
As part of this financing round, Uber has closed investments from Tiger Global Management and T. Rowe Price, and it’s also seeking strategic investors with shared business interests, the people said. Uber, Tiger Global and T. Rowe Price declined to comment.
One strategic investor, Microsoft, kicked in about $100 million in a previous round for the San Francisco ride-hailing company, people with knowledge of the matter said in July.
Tiger Global backs some of Uber’s main competitors outside the U.S., including China’s Didi Kuaidi, India’s Ola and Singapore’s GrabTaxi. The three Asian companies, along with Lyft in the U.S., are teaming up to form a global alliance that will make their apps cross-compatible for travelers, they said in a statement on Thursday.
Lyft, Uber’s biggest U.S. rival, is seeking to raise $500 million, according to fundraising documents obtained by Bloomberg last month. The materials also contain details about the company’s finances that suggest it’s spending aggressively to continue growing.
Lyft lost $127 million in the first half of 2015 on $46.7 million in revenue, according to the documents.
Uber, which launched its service more than five years ago, had already raised more than $10 billion before the current round. While most of that money has come in exchange for equity, the closely held company took on at least $1 billion in debt, part of a round led by Goldman Sachs’s private-wealth arm.
Uber is profitable in more than 80 cities around the world, and the number of U.S. trips completed this year has increased 250 percent compared with the same period last year, people familiar with the matter said.