According to Wall Street Journal and Marketwatch, Chinese fund manager Hillhouse Capital Group is leading an investment in Uber Technologies Inc., purchasing bonds that convert into shares at a discount to the ride-hailing company's future initial public offering price, according to people familiar with the situation.

The deal, which is in the range of $1 billion, has sparked some controversy as Hillhouse Capital is also an investor in Didi Kuaidi Joint Co., which is China's largest taxi-hailing app and major Uber competitor in China.

Uber is ramping up its efforts in China, pledging to spend $1 billion in the country this year and has launched a separate fundraising round specifically for its China operations, UberChina, on Monday.