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The DiDi Chuxing Opportunity

To our Valued Investors:

The next time you’re at a party and your ride takes off without you, try saying the following to a fellow guest: “It’s no big deal. I’ll just get a Beep! Beep! Mobility”. The person’s response will tell you if they really, really think you need a ride home, or if they are well-informed about the extraordinary investment opportunity we shall discuss this week.

“Beep! Beep! Mobility” is the literal translation from the Chinese DiDi Chuxing (pronounced dee dee CHOO shing). The most succinct description of this company is “the Chinese Uber”, but that phrase fails to truly reveal the size and the growth potential of the ride-hailing app. After all, DiDi swallowed Uber China. DiDi is the result of the 2015 merger of Didi Dache and Kuaidi Dache, which had recently raised about $1.3 billion collectively from heavyweight investors Alibaba and Tencent Holdings in aggressive funding rounds. In 2016, Uber China had been showing some signs of competition for DiDi, but Uber was losing $1 billion annually in the region. Less than two months after a gargantuan $4.5 billion fundraising round, Didi formally announced its acquisition of Uber China. Armed with this knowledge, consider the dominance of the ride hailing industry where you live. China’s population is approximately 4.25 times greater than that of the United States, and Chinese passengers prefer ride hailing over taxis by a more than four-to-one margin according to a 2018 study.

In the short time that has followed, DiDi has expanded into ride sharing, auto rental, bike sharing, food delivery, designated driving (wherein one can hire a chauffeur to drive one’s own car when one is unfit to drive), and even various financial services. They have invested in competitors like Grab, Lyft, Ola, Uber, Bolt, and Careem, acquired Brazilian ride hailing app 99 in its entirety, and expanded into Latin America, Australia and Japan. As of last spring, DiDi has raised $23.44 billion. The company is generating very healthy profits and is currently negotiating an IPO with a $60 billion valuation. The debut will likely take place in Hong Kong in favor of New York as a result of the current political climate and is expected to happen by the spring of 2021.

A desire to own a piece of this burgeoning enterprise with its huge profits would be quite understandable. The vast majority of investors will have to wait until the first half of next year to do so, at which point excessive demand will have the chance to drive share prices significantly higher. Supply on the secondary market is extremely limited but, of course, Iron Edge VC can provide access to you. This truly is a unique opportunity that can be found virtually nowhere else. For a broader understanding of DiDi Chuxing’s inherent potential, please click here for a detailed overview of the company.*

If you would like to learn more, or if you know of anybody else who would, please do not hesitate to contact us by clicking “Get in Touch” below.

As always, shares are available on a first come, first served basis.

All Our Best,

Paul Maguire, Managing Partner and The Iron Edge Team

5f6e0d464e388c4975685025 Paul Min

Paul Maguire

Founder And Managing Partner