SoftBank Backs Up a Brazilian Ride-hailing App with $100 Million

With the problem of consistent traffic and rising levels of pollution, using public transportation instead of private vehicles is a preferable option these days. Adding to this, thanks to ride-hailing apps, taxis are a convenient option with adequate safety facilities and necessary comfort. Such apps are a trending success in all the major cities of the world. Among such service providers, the most famous one is Uber. Uber can be called the only ride-hailing app that is almost consistently popular in all the major countries. But it seems like a Brazilian ride-hailing app is all set to act as a business threat to Uber. In order to make its services at par with Uber, this startup is also busy raising funds.

99 is the largest ride-sharing app in the country of Brazil. After establishing itself well in its territory, the company plans to venture on an international level. For this, it needs adequate funds for expansion at such a large scale. This is when SoftBank jumped in to help 99 financially. This isn’t the first time SoftBank has backed up a ride-hailing app. In January this year, it backed up Didi Chuxing of China and became a major investor in the same. This time it’s 99. And the fund provided to this Brazilian startup is $100 million.

Brazilian-ride-hailing-app

99 officially announced the news of this financial backup by SoftBank on Wednesday.

SoftBank’s business deal with this Brazilian ride-hailing app

99 officially announced the news of this financial backup by SoftBank on Wednesday. But the Brazilian startup refused to specify the stake of SoftBank in the company as a shareholder. SoftBank took this step as it believes in investing in the best ride-hailing service of a particular country. Earlier it was Didi Chuxing and now it is 99. The transaction between the two companies took place last week. For this deal, the Chief Executive of 99, Peter Fernandez flew down to Tokyo to meet the founder of SoftBank, Masayoshi Son. These two dignitaries met up and closed the deal.

This deal is a huge step for SoftBank especially in the country of Brazil due to the political upheaval present there. The country is in a mess as the President is facing corruption charges and the future here is uncertain. Despite this, SoftBank took the risk of providing finances to this Brazilian ride-hailing app. This itself signifies that the future of this startup in the long term may be secure and ascending. The company currently has over 200,000 registered drivers and more than 14 million users.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

UK’s Sanne agrees to consider Cinven bid

UK’s Sanne agrees to consider Cinven bid

Sanne, a UK fund administration business that provides alternative asset and corporate services, has agreed to hold talks with private equity firm Cinven over a potential £1.4bn t
7 hours ago
Global stocks rise as investors ignore inflations indicators

Global stocks rise as investors ignore inflations indicators

Global stocks rose to an all-time high, with investor showing confidence in a strong economic recovery from coronavirus and the vaccine effect, but the market is still a bit cautio
7 hours ago
UK watchdog whacks Amazon with probe for unfair data collection practices

UK watchdog whacks Amazon with probe for unfair data collection practices

The Competition and Markets Authority will focus on whether Amazon, Inc. favors merchants that use its delivery services.
3 days ago
Altice buys 12 percent stake in BT worth £2 billion

Altice buys 12 percent stake in BT worth £2 billion

Altice said it did not intend to make a bid for the British Telecoms company, though the takeover code also does not allow it to make an unsolicited buyout offer for six months wit
3 days ago
G7 countries agree on broad principles of minimum corporate tax deal

G7 countries agree on broad principles of minimum corporate tax deal

The world’s richest nations (G7) reached a landmark accord setting a global minimum corporate tax rate for multinationals. Would it be effective in tackling tax evasion and avoid
3 days ago
BC Partner goes the Continuation Fund way to strike a $7bn deal

BC Partner goes the Continuation Fund way to strike a $7bn deal

BC Partners, a UK private equity firm, has floated a “continuation fund” deal, one of Europe’s largest such deals, by transferring its 47 per cent stake in the academic publi
3 days ago