Didi, which raised $4 billion in a financing round last year, has enough money in its pockets right now and the company is expanding internationally at a rapid pace. Booking Holdings has a strong business with several subsidiaries and can prove to be a right partner for Didi in its growth plans.
Didi Chuxing to spin off car services unit
Didi is also planning the spin-off of its car services unit and is looking to generate $1 billion to $1.5 billion from the deal. The unit is valued at $2 billion to $3 billion right now. The car services unit, which includes sales, rental, maintenance and gas service operations, is an asset-heavy business. Didi is said to be planning an IPO in the near future, and this is reportedly one of the reasons behind the spin-off decision.
Offloading an asset-heavy business like the car services one could give Didi the flexibility needed to go ahead with its IPO plans. The ride-service company was valued at $56 billion at its financing round in 2017, and its IPO is anticipated to be huge for this reason.