Lyft has authorized a Series F round in which it could raise as much as $1 billion, according to a report by Bloomberg, citing a Delaware state filing.
We hear that Credit Suisse is running the fundraise — the big banks are getting involved with some of these large rounds, sorting everything out amongst the many investors. Goldman has been handling Uber’s mega-rounds, we’ve learned. (Maybe these banks will have a leg up in underwriting their IPOs in the future).
The new round authorized around 37 million shares at a price of around $26.79, whereas the last round was authorized at $19.45 per share. If the entire round is completed, Lyft would have a post-money valuation of $4.8 billion, VC Experts’ Justin Byers told TechCrunch. The information came in the form of a filing in Delaware that authorized the financing round.
However, just because the startup has filed to raise $1 billion doesn’t necessarily mean that’s what the final raise amount may be. The startup may elect to keep some shares off the table, and it was last reported to be in talks to raise $500 million. But the startup could, of course, end up raising the full $1 billion.
A Lyft spokesperson declined to comment on the story.
That would gift Lyft a newly-infused war chest to continue its duel with Uber, which was recently reported to have filed to raise as much as $2.1 billion. Lyft’s biggest challenge will be continuing to expand while Uber continues its consistent march across the globe. Lyft in the U.S.,Didi Kuaidi in China, Ola in India and GrabTaxi in SouthEast Asia earlier this month formed a strategic partnership to work together on technology and services. The firms all share common investors, and collectively are essentially positioning themselves as an Uber rival.
Amid reports of Lyft’s financial struggles in its recently leaked financials, it’s obvious why the company seeks to raise so much money — the on-demand transportation market is a tough place to operate, especially with competition like Uber. According to Bloomberg, the ridesharing startup took a net loss of $127 million in the first half of this year while bringing in less than $47 million in revenue.
Lyft raised $150 million in May, putting the ridesharing startup at a $2.5 billion valuation.