Uber Technologies Inc., the car-booking company, is close to completing a round of fundraising of about $1.4 billion for its business in China, people familiar with the matter said.

Uber China attracted investors including Baidu Inc., a unit of China’s Citic Group Corp. and China Life Insurance Co., the people said, asking not to be identified as the information is confidential. Uber itself is putting $300 million to $500 million into the Chinese business as a show of confidence in the viability of the unit, the people said.

The deal boosts Uber’s efforts to compete in China against market leader Didi Kuaidi, which has the backing of local Internet giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd. San Francisco-based Uber is planning to invest more than 7 billion yuan to expand in China, which is projected to outgrow Uber’s U.S. home market by the end of this year, Uber Chief Executive Officer Travis Kalanick wrote in a letter to investors in June.

Nairi Hourdajian, a spokeswoman for Uber, and Baidu spokesman Kaiser Kuo declined to comment.

Uber China’s valuation is around $7 billion and the business will probably list in Hong Kong or mainland China after five years, according to copies of an offer sheet circulated to investors and seen by Bloomberg.

Didi Kuaidi raised $2 billion from investors recently and is seeking more funding, the company said in July. Didi Kuaidi accounts for 78 percent of the country’s private-car business, according to Analysys International.

–With assistance from Eric Newcomer in San Francisco.

This article was written by Bloomberg News from Bloomberg and was legally licensed through the NewsCred publisher network.

Tags: funding, uber