By Heather Somerville
SAN FRANCISCO (Reuters) – Ride-services company Lyft has raised $600 million in fresh funding, fuel for the company’s growth as it continues to compete fiercely with larger rival Uber Technologies Inc [UBER.UL].
Lyft said on Tuesday it closed the widely anticipated funding round, which had been in progress for weeks.
The $600 million came mostly from large global investment funds rather than startups’ traditional funding source of venture capital. The round values the company at $7.5 billion, a sharp increase from the $5.5 billion valuation at Lyft’s last financing more than a year ago.
In January 2016, Lyft raised $1 billion, half of which came from automaker General Motors Co <GM.N>.
Both the funding total and the valuation exceed previous targets. Last month, a source close to the company said Lyft was aiming to raise $500 million at a valuation of $6 billion to $7 billion.
The funding comes from previous investors including Japanese internet company Rakuten Inc and investment fund Janus Capital Group Inc <JNS.N>, and first-time Lyft investors including private equity firm KKR & Co <KKR.N>, large asset manager Baillie Gifford, and one of Canada’s largest pension funds, the Public Sector Pension Investment Board.
