China’s Didi reports a net loss of $1.6bn for 2020 ahead of IPO

The company plans to go public in one of the largest tech initial public offerings of the year. Chinese ride-hailing app Didi reported a net loss of $1.6 billion in 2020 ahead of its US public listing. The company plans to go public in one of the largest tech initial public offerings of the year. Didi, which is the equivalent of Uber in China, reported a revenue of $21.6bn in 2020. Its revenue for the previous quarter also reached $6.4bn, with a net income of $95 million after payouts to shareholders. Didi in its first ever public filing has offered shares worth $100 million. The figure is a placeholder that is subject to change, when the company discloses terms for the share sale. The Chinese company registered its regulatory filing under the name Xiaoju Kuaizhi, with Goldman Sachs Group, Morgan Stanley and JPMorgan Chase backing the offering. Didi, the largest investment within SoftBank Group’s portfolio, was earlier targeting a valuation above the $62 billion it secured during its last funding round. The company was founded by former Alibaba Group executive Cheng Wei in 2012. Didi clashed with Uber in China for years until the American company sold its operation in the country to its local rival in 2016. Didi held a near monopoly, but has suffered a series of ocassional blows to its business and reputation.