Update: Lyft confirmed on Wednesday night that it has raised a $530 million round led by Rakuten. The money, Lyft said in a blog post, will be used for U.S. expansion and building out Lyft Line, the company’s carpooling service.
Original post: Uber is not the only ride-hailing tech company reeling in incredible amounts of money from investors.
TechCrunch reported tonight that Lyft has closed a $530 million Series E round led by Japan-based e-commerce company Rakuten. The financing values Lyft at $2.5 billion and pushes total funding past $850 million.
Last month, the New York Times reported that Lyft was in talks to raise $250 million, at a valuation of $2 billion. That has apparently changed in the past month.
Founded in 2012, Lyft last raised a $250 million Series D round in April 2014, which pushed total funding past $332 million.
The fresh cash would provide a nice boost for Lyft as it tries to compete with Uber, which has now raised more than $5 billion and is valued at more than $40 billion. Uber, which launched in 2009, is now operating in more than 270 cities across 54 countries.
Lyft, meanwhile, offers service in 65 U.S. cities, but has yet to expand internationally. The two companies have gone head-to-head over the past several years in an attempt to win over ride-hailing smartphone users.