Lyft has confirmed that it has raised a new round of funding, bringing in $600 million from a mix of new and existing investors. The latest investment places the ride-hailing company at a $7.5 billion post-money valuation.
Investors that contributed to the round include AllianceBernstein, Baillie Gifford, KKR, and Canada’s Public Sector Pension Investment Board (PSP), along with previous backers Rakuten and Janus Capital.
In a blog post, the company wasn’t immediately forthcoming with what it plans on doing with the new funding, but it did say that it’ll be investing in the “people behind our business, making sure to take care of our drivers, passengers, and team members.” It hinted at new plans coming in the future.
A week ago, it was reported that the company had completed its latest round of fundraising, adding $500 million to its coffers in a move that would give it a $7.5 billion valuation. Lyft has been aggressively expanding over the past few months, adding more than 100 new markets in the U.S., so it will be worth seeing what’s next for the company — is international expansion possible, or will additional features be rolled out to help drive new revenue in a bid to curb financial losses?
Lyft’s latest investment comes as its main U.S. competitor Uber is facing some backlash caused by its practices and its CEO. However, from a fundraising standpoint, Lyft still falls way behind, having now raised just under $3 billion — Uber has raised $8.81 billion.
But it seems that Lyft is taking some momentum away from its rival, generating a 34 percent increase in rides from 2016 — 70.4 million rides were given in the first three months of this year. The company also saw a 60 percent increase in new users week over week in the aftermath of the #DeleteUber campaign.
“We’re working hard bringing Lyft’s mission to life, improving people’s lives with the world’s best transportation,” stated Lyft president John Zimmer in a statement. “We have big plans on the horizon, and will continue investing in new technology and hospitality in order to create experiences that passengers and drivers will love.”
Updated as of 12:18 p.m. Pacific: Post updated with comment from Lyft.