Ride-hailing company closes $600 million funding round
Baillie Gifford, Canadian pension fund also new investors
Lyft Inc. , the San Francisco-based ride-hailing company, said it has closed a $600 million round of financing, valuing the company at $7.5 billion. New Lyft investors include private equity firm KKR & Co., asset management firms Baillie Gifford and AllianceBernstein LP and the Canadian pension fund PSP Investments, the company told Bloomberg News.
Lyft, first known for its pink-mustachioed cars, last raised $1 billion at a $5.5 billion valuation in a December 2015 round led by General Motors Co. This latest funding round includes existing investors Rakuten Inc. and Janus Capital Group Inc.
Lyft is tapping a set of investors who frequently back public companies or provide funding just ahead of an initial public offering. The company has been quiet about the timing of an IPO, but investors in Lyft and Uber Technologies Inc. have long speculated that Lyft would be smart to try to enter the public market before its much larger competitor. One Uber investor compared the dynamic to the Chinese e-commerce companies Alibaba Group Holding Ltd. and JD.com Inc. Once the smaller JD.com went public, Alibaba soon followed. George Roberts […]