Lyft hires investment banker Qatalyst in funding search

SAN FRANCISCO, June 28 (UPI) -- The ride-sharing company Lyft Inc. hired investment bank Qatalyst Partners LP to explore finance options.

A source close to Lyft told Bloomberg News it remains unknown if the company, a smaller competitor to Uber Technologies Inc., seeks a buyer or an infusion of cash from new investors. Lyft has raised about $2 billion in funding, about $500 million of it from General Motors; Uber has raised six times more funding than that.

Qatalyst CEO Frank Quattrone has recently sought out companies, including auto companies, about acquiring a stake in Lyft, the source said. In its involvement with Lyft, General Motors has said it regards ride-sharing to be an important part of the industry's future.

The hiring of Qatalyst could also mean Lyft is preparing to be sold; Qatalyst ranks fourth in 2016 in investment banks advising on acquisitions, working on nearly $34 billion in deals, and advised LinkedIn Corp. in its $26 billion sale last month to Microsoft Corp.

The hiring comes as promising startup companies find it harder to raise funding from venture capitalists, the traditional way for a company like Lyft to finance itself. Apple Inc. recently announced a $1 billion investment in Chinese ride-sharing startup Didi Chuxing, Volkswagen invested $300 million on Israeli company Gett, and Toyota Motor Corp. made an investment in Uber.