Ride-Share Firm Cabify Said to Seek Funding, Sign Latam DealBy
Cabify wants to raise at least $300 million in new funding
Madrid-based company also signed a partnership with Easy Taxi
Spanish ride-sharing company Cabify is seeking at least $300 million in new funding as it works to expand in its current markets, according to people familiar with the matter.
The Madrid-based company is working with Bank of America Corp., the people said, asking not to be identified because the deliberations are private. The company, which is currently valued at about $1 billion, may wrap up the fundraising in the coming months, one of the people said. The new capital would add to the $100 million Cabify raised in April, according to a regulatory filing.
Potential investors include existing backers, such as Japan’s Rakuten Inc., carmakers and technology firms in the automotive industry, the people said. Institutional investors are also interested in participating to position themselves for a potential initial public offering in the future, the people said.
Cabify, founded in 2011, has also signed a strategic alliance with Easy Taxi to combine their investor base and expand services in Latin America, the people said. The companies have been working on the partnership since the end of last year, they said.
“Cabify and Easy share a vision of transforming cities in Latam by improving mobility of their citizens,” said Juan de Antonio, founder and chief executive officer of Cabify, declining to comment on the capital raise. “The alliance has the goal of making this vision a reality faster.”
“Easy Taxi is excited with the strategic alliance and already experiences higher growth rates,” the company’s co-CEO Dennis Wang said in an emailed statement. “We are now in an even better position to improve urban mobility.”
Rakuten managing partner Oskar Mielczarek de la Miel said the firm is “confident in Cabify’s outlook for the future as they have a great management team in place and compelling plans for growth.”
A spokeswoman for Bank of America declined to comment.
Cabify operates in about a dozen countries including Spain, Portugal and several in Latin America. Its biggest market is Brazil, where rival Easy Taxi was launched in 2012. The companies’ mobile applications help customers connect with private drivers and taxis.