Lyft in Talks with New and Existing Investors to raise $250 Million

Lyft in Talks with New and Existing Investors to raise $250 Million

Ridesharing company Lyft is in advanced discussions with new and existing investors in order to raise $250 million of financing, said people with knowledge of the situation. Back in 2102, Lyft was found by John Zimmer and Logan Green and operates in over 60 US cities.

According to one of the people, who asked not to be named as the talks are private, the financing round is valuing Lyft at $2 billion. The company has secured part of the financing. The deal has not closed and possibly the terms can change, said another person familiar with the situation.

Co-founder John Zimmer said that in 2014, revenue and number of rides of Lyft increased, with the startup reaching profitability in its most established markets like San Francisco. The company has worked hard to get out of the shadow of larger competitor Uber Technologies Inc.

Last month, Uber Technologies Inc raised 1.6 billion in convertible debt and also closed a $1.2 billion financing agreement. Back in 2009, Uber was started by Travis Kalanick and Garrett Camp and it operates in 277 cities in 54 countries.

Lyft is going to use money to expand further and last year it raised $250 million in a round of financing led by Alibaba Group Holding Ltd. The company counts Floodgate and Andreessen Horowitz among its previous investors.

Both the companies have ride-sharing services by smartphone applications. Because of them the established market of taxi and limousine operators have also got disturbed. Still, Lyft lags behind Uber in many key metrics, involving funding raised, valuation and the number of markets in which it operates.

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