Didi Kuaidi, China's biggest ride-hailing company, is all set to raise at least $1 billion in fresh round of fundraising, according to a source close to the company.

The concerned source revealed that deal has not yet been closed and is reportedly oversubscribed, pushing company's valuation over $20 billion.

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The fresh round of funding will enable Didi Kuaidi to compete with its fiercest rival Uber, who is apparently still struggling to make a foothold in the lucrative Chinese market.     

Didi Kuaidi is ahead of Uber in almost all the important metrics, standing as a clear leader and forcing its San Francisco-based competitor to bite dust in China's taxi hire market.

This week Uber's CEO Travis Kalanick revealed that his company is losing $1 billion dollar every year in China due to fierce competition from Didi Kuaidi.      

Uber's CEO stated that although Didi Kuaidi's market share was increasing, it is unprofitable in every city. A approach that is unsustainable in the long term.

Didi Kuaidi was formed by merger of two rival taxi-hailing apps a year ago. Since then the company seemingly catapulting to success, with its market share growing at pretty berserk rate.  Didi Kuaidi operates in 350 cities across China, as compared to only 22 cities by Uber by the end of 2015.        

Didi Kuaidi's fresh round of funding comes after the company raised $3 billion from investors in September, raising its valuation to $ $16 billion.

Investment holding company Tencent and e-commerce giant Alibaba are among the main investors in the car holding company.            

TagsDidi Kuaidi, Uber