Long way to go for Uber!

The world-famous U.S taxi-hailing services, Uber raised $3.5 billion from Saudi Arabia’s sovereign wealth fund to set its foot in the Middle East. Currently, it is operating in 69 countries. The funds were secured from $3.5 billion from Saudi Arabia’s Public Investment Fund at the valuation of $66 billion. The Middle East seemed to be a lucrative area of expansion. This is Uber’s largest investment from a single investor. As it is, the company has redefined private fund-raising. To push its operations globally at a rapid pace, Uber needs a handsome amount of capital.

Uber has raised funds from a lot of investors, including traditional venture capital firms, mutual fund giants like BlackRock, and wealthy clients of firms like Goldman Sachs and Morgan Stanley. Other sovereign wealth funds, like that of Qatar, have also invested.

With this, Uber aims to become the most highly valued venture and capital-backed company. Moreover, Uber promises to invest $250 million in the Middle East. Around 80% of the Uber drivers are reportedly women. The Kingdom of Saudi Arabia also looks forward to transforming its economy by reducing its dependency on oil and providing more employment. Uber seems to step in the region at the right time.

Investment in Uber signifies revolution in Saudi Arabia.

Takeaways:

• The funds were secured from $3.5 billion from Saudi Arabia’s Public Investment Fund at the valuation of $66 billion.
• This is Uber’s largest investment from a single investor.
• Uber promises to invest $250 million in the Middle East.