Saudi Arabia’s Aramco is investing $3.5bn in Uber

Saudi Arabia’s sovereign wealth fund is investing $3.5bn in Uber, marking the largest single investment ever made in a private company.
The deal solidifies Uber’s place as the most-funded start-up in the world and brings its war chest to more than $11bn, at a time when the company is aggressively expanding in nearly 70 countries worldwide.
The investment also marks a bold step for Saudi Arabia’s sovereign Public Investment Fund, which has come under new management as part of a broader reshuffle that put in place the team handpicked by Mohammed bin Salman, deputy crown prince, as he implements an ambitious reform programme.

After its investment, the PIF will own approximately 5 per cent of Uber, and its managing director, Yasir Al Rumayyan, will join Uber’s board.
The huge sums raised by Uber and others underscore a tectonic shift in the markets for private capital, as private companies are able to raise more from investors than ever before. To put Uber’s fundraising in perspective, Google raised $2bn during its IPO in 2004, after raising just $25m from investors while it was a private company.
The deal marks the closing of Uber’s Series G investment round, which began last year and has raised more than $5bn from investors including Russia’s LetterOne and China’s Baidu, at a valuation of $62.5bn.
In total Uber has raised about $10.7bn from outside investors, excluding a $2.3bn convertible debt facility, making it the best funded start-up in the world.
The news comes just two weeks after Uber’s Chinese rival Didi Chuxing announced a $1bn investment from Apple, raising the stakes in the expensive taxi-booking wars in China. Uber has been pouring money into subsidies in China and India in an attempt to gain market share from local rivals.
Taxi-booking services have been particularly popular among women in Saudi Arabia, where women are not allowed to drive themselves.
Jr. Trader. V. Mitov