Saudi Arabia's billionaire Prince Alwaleed bin Talal gestures during a press conference in the Saudi capital, Riyadh, on July 1, 2015.
FAYEZ NURELDINE—Getty Images

The ride hailing service will use the money in its battle against Uber.

By Reuters
December 24, 2015

(Reuters) – Saudi Arabia’s Kingdom Holding, the investment firm of billionaire Prince Alwaleed bin Talal, said on Thursday it had led a group of investors which bought 5.3% of U.S. ride-hailing firm Lyft for $247.7 million.

Lyft, Uber’s biggest competitor in the United States, is looking to raise up to $1 billion in a Series F funding round, according to filing provided by VC experts earlier this week.

Kingdom, Prince Alwaleed and other parties invested $100 million in the Series F capital increase, with Kingdom taking a $31 million share, the Saudi firm said in a bourse filing without naming the other investors.

In addition, Kingdom and Prince Alwaleed invested $147.7 million to acquire preferred shares inLyft in the secondary market. Kingdom’s share of this invetment was $73.9 million.

Kingdom, which now owns 2.3% of Lyft on an as-converted basis, used existing available funds for the acquisition, it said.

Lyft, a privately held transportation network company based in San Francisco, makes a smartphone app that facilitates peer-to-peer ridesharing by connecting passengers who need a ride with drivers who have a car.

Kingdom and Alwaleed are major investors in U.S. companies in the technology and other sectors; together they own more than 5% of Twitter TWTR .

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