Beijing Didi Infinity Technology & Development Co. Ltd. (DiDi) has evolved from a small taxi-hailing platform into a global mobility giant across 15 countries in three continents. DiDi’s international treasury team play a crucial role in the company’s rapid expansion and growth. This team oversees the day-to-day cash management operations, develops and implements policies and procedures for cash and liquidity management, and collaborates with various departments, including accounting, and tax and compliance, to ensure all treasury practices align with regulatory requirements in all the countries in which they operate.

The team faced the following challenges:

1. Global operations – DiDi operates in more than a dozen countries, each with its own unique regulatory landscape and financial systems. The team faced challenges in navigating these complex environments and ensuring seamless cash management across different regions.

2. Rapid growth – as DiDi continued to expand its operations into a fintech business, the team needed to adapt to the changing needs of the company. This included managing large amounts of cash flows, investing in strategic initiatives and local leading companies, and maintaining liquidity to support growth.

3. Payments’ volume – the challenge of managing vast volumes of individual payment transactions was multi-faceted. Payment failure led to financial distress for drivers. Delayed or incorrect payments disrupted driver’s cash flow, impacting their ability to cover daily expenses and maintain their vehicles. Financial losses from duplicate payments and reputational risk stemming from vast payment failures before a new year holiday for example, also posed risk management challenges. To deal with any payment incidents and mitigate them before they happened, the team considered both the drivers’ and DiDi perspectives.

4. Regulatory compliance – DiDi operates in a highly regulated industry, and the team must keep abreast of changing regulations and ensure compliance with various laws and regulations worldwide.

5. Market volatility – the ride-hailing industry is subject to market volatility, including competition, changes in consumer behaviour and economic fluctuations. The team need to manage risks associated with these factors and maintain a stable financial position and treasury operation.