Microsoft Corporation (MSFT) invests $100 million in Uber

Uber Technologies Inc has closed a brand new spherical of funding that values the web taxi-hailing firm at nearly $51 billion, the Wall Street Journal reported, citing individuals conversant in the matter.

This new round cements Uber’s place as one of the most richly valued private companies ever, along with other startups like Xiaomi, the Chinese electronics company valued by investors at around $US45 billion, and Airbnb, the short-term lodging service valued at more than $US24 billion. According to a Bloomberg source who refused to be identified, a deal was finalized last Friday.

Led by CEO Travis Kalanick, the funds will be used to expand operations to cities across the globe.

“We filed to authorize this new funding greater than two months in the past”, Kristin Carvell, a spokeswoman for Uber stated in an e-mail.

Despite growing pains in India’s tax-app sector, analysts at Morgan Stanley predict that the market will be worth $5 billion by 2020. The filing is available to the public.

Tony Imperati, a spokesman for Redmond, Washington-based Microsoft, declined to comment. Today it covers n eleven cities across India – Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Jaipur, Kochi, Kolkata, Mumbai, New Delhi, Pune. In March this year, Uber entered into a strategic deal with Times Internet to boost its reach in the country and also raised around $23 Mn from the latter. Just recently, The New York Times reports Uber had acquired a part of Microsoft’s “mapping-technology assets” and even extended some employment offers to over 100 Microsoft employees.

The two companies have also combined to integrate Uber into Microsoft’s Cortana voice-controlled assistant so that it can hail an Uber ride for users as a scheduled meeting on their calendar approaches. It is an evidence of the fact that the two companies will remain partners in the future too.

Uber, founded in 2009 by Mr Kalanick and Mr Garrett Camp, has expanded to more than 300 cities in at least 57 countries. It has made headlines around the world by disrupting local taxi and vehicle service markets through its breakneck expansion. Furthermore, an Uber representative has also told The New York Times that the ride-sharing company had set aside as much as $1 billion to grow its business in India where competition is tight.