Uber is losing $1 billion a year in China, but profitable in the US, according to news reports. The information comes after the ride-sharing company reported a $200 million investment last week from LetterOne, an investment firm led by Russian businessman Mikhail Fridman.

“We’re profitable in the USA, but we’re losing over $1 billion a year in China,” website Betakit.com reported Uber CEO Travis Kalanick as saying. “We have a fierce competitor that’s unprofitable in every city they exist in, but they’re buying up market share. I wish the world wasn’t that way. I prefer building rather than fundraising. But if I don’t participate in the fundraising bonanza, I’ll get squeezed out by others buying market share.”

Newsweek reports the challenger is Chinese-based ride sharing firm Didi Kuaidi.

Staffing Industry Analysts ranks Uber as the largest company in terms of human cloud spend based on 2014 spend and Didi Kuaidi as the second-largest.

The news that Uber is losing $1 billion a year in China follows the previous announcement from LetterOne last Friday when the Luxembourg-based LetterOne confirmed the $200 million investment.

“I’m excited by our strategic partnership with Uber,” Fridman said in a statement. “As entrepreneurs, with experience in retail, banking, telecoms and energy sectors, and knowledge of diverse developed and emerging markets, we believe that Uber’s highly talented management team possesses the necessary vision and skills to build the company into one of the world’s preeminent technology businesses.”

Uber’s valuation has been placed by news reports at $62.5 billion. Uber’s Chinese unit was valued at $7 billion.