Ride services company Lyft Inc. has nearly completed a funding round of at least $500 million, valuing the company at $7.5 billion, according to a source close to the company.

San Francisco-based Lyft has been in fundraising mode for some time as it spends heavily to compete with its much bigger rival Uber Technologies Inc. The $7.5 billion valuation marks a sharp increase from the $5.5 billion valuation at Lyft's last financing more than a year ago.

Lyft had previously expected to command a valuation of between $6 billion and $7 billion in its newest funding round , but the source said the valuation had been revised upward.