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REPORT: Lyft is raising $500 million at a $2 billion valuation

Feb 13, 2015, 03:23 IST

The New York Post is reporting that Lyft is raising $500 million in new funding.

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This new round of funding would value the car-hailing company at $2 billion, the Post said, citing documents reviewed by the publication. That's more than double its most recent $850 million valuation.

"The rising valuation likely reflects Lyft's revenue growth, which is growing 40 percent quarter over quarter," the Post's Kevin Dugan reports.

Last month, sources told Re/code's Liz Gannes that Lyft was looking to raise more money, and that fundraising efforts for the car-hailing company, which has already raised $330 million, were going well.

Gannes reported:

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Lyft raised its most recent funding, a Series D round of $250 million, in April 2014. The round of fundraising was led by hedge fund Coatue Management, Alibaba, and Third Point, with participation from existing investors Andreessen Horowitz, Founders Fund, and Mayfield Ventures.

As competition in the on-demand car-hailing space heats up, Lyft's fundraising efforts will inevitably be compared to those of its rival, Uber. Uber just raised a $1.2 billion round of funding at a $41 billion post-money valuation, and operates in 53 countries and more than 200 cities globally. By comparison, Lyft operates in 65 US cities currently.

We've reached out to Lyft for comment, and we'll update this post if we hear back.

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