The Public Investment Fund, sovereign fund of Saudi Arabia, made an investment of 3.5 billion dollars to enter the capital of Uber in what so far has been the biggest bet ever this fund in a private company. The PIF will now hold about 5% of the capital of Uber and its director-general, Yasir Al Rumayyan, will join the company’s board of directors, reports the Financial Times today. With this investment, the Uber reinforces the status of “startup” that has received the largest volume of investment. So far the company has raised more than 11 billion dollars, money that is used to fund the strong expansion, since it is already present in 70 countries. The Financial Times notes with Uber and other young companies are changing the paradigm of corporate finance out of the bags, which involves increasingly large sums. To illustrate, the British newspaper reminds that Google raised only $ 25 million from investors before dispersing capital on the stock exchange in 2004, in an operation that resulted in a recess of only 2 billion.
With the investment of the PIF, the Uber completed a new round of financing, which have already entered companies like LetterOne Russian and Chinese Baidu and which is based on an assessment of the company 62.5 billion. But Uber is not the only taxi service company to receive investor interest. Chinese rival Didi ChuXing received an investment of one billion dollars by Apple. The agreement between the Uber PIF does not require the company to strengthen its presence in Saudi Arabia, but this is a market where Uber is booming because of its service is quite popular, especially among women (who are forbidden to drive). Unlike registered in Europe, where several countries have banned the activity of Uber in the Middle East Uber is easily expand their service. “We have seen firsthand how this company is to improve urban mobility around the world and we want to be part of this process,” he said Yasir al Rumayyan also noting that this PIF investment also shows how Saudi Arabia is changing your profile investor, “to put our money in a visionary business”.