NEW YORK ( TheStreet) -- China's Hillhouse Capital Group has invested in Uber ahead of the company's IPO, a move that will give the ride-share service more cash to expand its business overseas and enter new lines of business.

According to the Wall Street Journal, the convertible debt Hillhouse bought can convert into Uber shares at a price lower than the IPO price. Hillhouse has also invested in Chinese competitor ride-sharing app, Didi Kuaidi Joint Co., which could lead to a conflict of interest if Uber expands upon its UberChina plans.

In January, Uber -- which is valued at more than $40 billion -- issued $1.6 billion in convertible debt to some Goldman Sachs (GS) clients. Uber has also received funding from some of the world's biggest venture-capital firms as well as India's largest newspaper conglomerate. The Hillhouse investment is said to be up to $1 billion.

The investment pushes Uber's entrance into China, which the company sees as its biggest future growth opportunity. The San Francisco-based company is also making a push for business in India.

Uber has also rolled out UberPool, a car-pooling service, and it may also use its cash to enter logistics and form a delivery service. Uber has already begun testing the delivery service in select cities.

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