Uber to set new record as funding nears $10bn

Uber’s latest financings will bring its total funding to $10 billion, setting a new record for a US tech company before it goes public, as it closes in on a new credit line and equity round.

Much of that equity and debt has been raised in the past six months, as the San Francisco car-hailing company takes advantage of huge investor appetite for its fast-growing business.

The funds will go towards financing its costly expansion into 300 cities around the globe. Uber is facing mounting legal fees as it deals with a number of regulatory challenges. It is also investing heavily in technological innovations such as driverless cars.

Uber's financial firepower is unprecedented in Silicon Valley history, far exceeding the sums raised by Facebook or Google before their initial public offerings.

Its fundraising shows how an abundance of investor cash is allowing US tech companies to wait longer than ever to list on public markets and opt instead for raising capital from private sources.

World’s biggest banks

It emerged last week that Uber was close to securing a $2 billion credit line from a group including several of the world’s biggest banks, such as

Morgan Stanley

,

Deutsche Bank

and Goldman Sachs.

It pursued the deal after receiving more interest from lenders than it expected when it began talks for a $1 billion facility last month.

– (Copyright The Financial Times Limited 2015)