BEIJING – T3, a Chinese ride-hailing company backed by state-owned automakers FAW, Dongfeng and Changan said on Tuesday that it had raised 7.7 billion yuan ($1.2 billion) to fund expansion.
T3’s funding round comes as ride-hailing companies step up efforts to take market share from China’s ride hailing market leader Didi Global Inc which is facing a cybersecurity investigation by Chinese authorities.
T3, along with other ride hailing companies, including Meituan’s and Geely’s Cao Cao, is offering promotions to attract more users.
The company did not disclose its valuation after the funding. Investors in this funding include Yingtong Technology, online travel platform Tongcheng, and Virtue Capital, an investment company led by Dong Yang, former head of China Association of Automobile Manufacturers (CAAM), T3 said in a statement.
The ride hailing industry in China is under scrutiny by the country’s regulators, who are urging ride hailing companies to hire qualified drivers to comply with relevant rules and protect data security.
(Reporting by Yilei Sun and Brenda Goh. Editing by Jane Merriman)