Japanese technology conglomerate SoftBank has reached a deal with Uber to buy a multi-billion dollar stake in the cab-hailing company, Reuters reported.
SoftBank is also a major investor in Ola, Uber’s main competition in India.
Uber confirmed the deal with a consortium led by SoftBank and Dragoneer Investment Group on Sunday, without giving details. The agreement lets SoftBank and other firms invest $1 billion (around Rs 6,533 crore) in Uber. SoftBank will then offer to purchase shares from investors and Uber employees to reach a 14% stake in the company, Bloomberg reported.
“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment,” an Uber spokesperson said, according to Reuters. “We believe this agreement is a strong vote of confidence in Uber’s long-term potential.”
Uber is currently valued at $68.5 billion (roughly Rs 4,47,540 crores).
The Uber board first agreed more than a month ago to bring in SoftBank as an investor and board member, but negotiations were slowed down by a row between venture capital firm Benchmark and former Uber Chief Executive Travis Kalanick.
Uber has been plagued with controversies in 2017, from sexual harassment to discrimination and leadership changes.