Uber raises $1.2 billion at $40 billion valuation

NEW YORK: Uber just raised $1.2 billion, CEO Travis Kalanick announced on the company's blog. The ride-hailing and logistics startup has raised $2.7 billion since its founding in 2010.

The company didn't announce its valuation, but Business Insider can confirm that it was $40 billion.

Uber says it will use the $1.2 billion to create more than 1 million jobs in 2015 and to "make significant investments, particularly in the Asia Pacific region." Uber also vows to become "smarter and more humble" moving forward.

Recently, its executives have taken heat for saying and doing controversial things.

The company hired Goldman Sachs Group Inc to sell more than $1 billion of convertible debt to the bank's wealth management clients, according to people with knowledge of the matter.

Goldman Sachs clients are getting a chance to buy a six- year bond in the mobile car-booking company that will convert into equity at a 20% to 30% discount to Uber's valuation at the time of an IPO, said the people, who asked not to be identified.

Goldman Sachs isn't investing its own money in the debt, said the people. The convertible bond carries a coupon that increases over time if Uber hasn't gone public within four years, said the people.

(With inputs from Bloomberg)