Saudi Prince Alwaleed's Firm Leads $247.7 Million Investment in Lyft

Ridesharing service Lyft ​is getting a boost from Saudi Arabia's Prince Alwaleed bin Talal.

The prince ​announced Thursday that his Kingdom Holding Co. ​is paying $104.9 million ​for 2.3 percent of Lyft, part of a larger investment ​by an unnamed group ​of $247.7 million for 5.3% of the San Francisco-based company. The investment boosts Lyft's estimated valuation to $4.92 billion.

Mr. Alwaleed isn't likely to catch a Lyft ride anytime soon from his Saudi Arabian home. The service operates only in the U.S. after it scaled back plans to expand overseas.

Lyft, like its well-known rival Uber Technologies Inc., offers on-demand rides from a pool of drivers through its app. The two companies have been expanding – and raising funds -- rapidly as such services take hold in competition with traditional taxis.

​ ​Although it does not operate overseas, Lyft has taken investment from China's largest ride-share provider -- Didi Kuaidi ​-- and struck an alliance with other local players around the globe.

Despite the lift from Mr. Alwaleed, Lyft is still valued at a fraction of Uber, which recently raised funds at as much as a $64.6 billion valuation. Uber is is in many overseas markets, including the Saudi capital, Riyadh.

​ ​Earlier this month, Lyft filed paperwork in Delaware authorizing the sale of as much as $1 billion in new preferred shares. That could give ultimately give Lyft a $5.75 billion valuation, according to private market data firm VC Experts.

Through Kingdom Holding, Mr. Alwaleed is an investor in a diverse set of industries, including agriculture, health care and hotels. The firm is ​an ​investor in Apple Inc.​, social media company Twitter Inc., ​and News Corp, the parent company of The Wall Street Journal.

(END) Dow Jones Newswires

December 24, 2015 16:35 ET (21:35 GMT)

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