Cheng Wei, CEO of Didi Chuxing, said, “The creation of Xiaoju Automobile Solutions is not only a key step towards achieving Didi’s automobile alliance strategy but also a milestone in organizational innovation as we continue to expand our business horizon.”
On Monday, the company announced that it would pump in $1 billion into this unit, which is renamed Xiaoju Automobile Solutions Co.
Though Didi never confirmed its plans for an IPO, rumors claimed that the company will go public in 2019. The IPO, if it happens, will be huge, as the company was valued at $56 billion during its round of financing in 2017.
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Last month, Reuters had reported that Didi was planning to unload its auto leasing unit in a deal valued at $1.5 billion before its IPO. Xiaoju Automobile Solutions has an annualized gross merchandise value of 60 billion yuan ( approx $8.79 billion)
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Didi, which has expanded into a number of markets worldwide, aims to branch out into the other segments in the transportation industry including bike-sharing and food delivery.