Foxconn joins list of global tech heavyweights invested in Didi Chuxing
A unit of Foxconn Technology Group, Forteq Holdings, has acquired a 0.36% stake in Chinese ride-hail platform Didi Chuxing for $119.9m, taking Didi's valuation to $33.8bn, according to a filing with the Taiwan Stock Exchange. Foxconn, a major assembler of Apple devices, said the transaction was part of a broader effort to expand its offering of products and services, having previously signed agreements on strategic cooperation with leading internet firm Tencent and China Harmony Auto to develop electric cars. After the investment from Foxconn, the list of Didi's investors includes some of the biggest tech giants globally such as Uber, Apple, and Alibaba.
In May, Apple poured $1 billion into Didi Chuxing, China’s biggest ride-hailing service. At the time, it seemed like a snub to Uber, Didi’s chief rival in the People’s Republic, but months later, Uber and Didi came to what appeared to be a truce. Didi Chuxing bought Uber China to create a new entity worth an eye-watering $35 billion—the combined valuation of Uber China and Didi, then worth $28 billion.

Now, Didi has a new investor that already has its own relationship with Apple: Foxconn, the Taiwanese iPhone supplier, has invested $119.9 million in Didi for a 0.355 percent stake in the company, The Wall Street Journal reported Thursday. The new investment values Didi alone at $33.8 billion, bolstering the four-year-old Chinese ride-hailing company’s position as the second most valuable venture-backed private company in Asia, behind only Xiaomi.

With its new investment from Foxconn, Didi’s investor portfolio has grown to resemble a Who’s Who of Asian tech giants, including Tencent Holdings, Baidu, and Alibaba. “With the support of Foxconn and other value investors home and abroad, Didi will continue to push the frontier of innovation for the mobile transportation market and create ever stronger driver and rider communities,” a Didi spokesperson said in a statement. “Both Didi and Foxconn are focused on innovation and execution. We are exploring possibilities, but there are no concrete plans for cooperation yet.”

Those possibilities for cooperation are certainly intriguing. While best known for making iPhones, Foxconn is no stranger to investments in the transportation space. Earlier, the company made an investment in Chinese smart-car company Future Mobility, which aims to bring electric cars to the road by 2020. Though it’s not clear that Foxconn’s investment in the company is necessarily related to Apple’s, it’s not hard to imagine the three entities working together on Apple’s secretive car endeavor, known as “Project Titan.” In an era where the interests of established tech companies, ride-hailing start-ups, and auto manufacturers are merging, Foxconn’s foot in the door looks prescient.