China’s leading bike-sharing company Mobike has reportedly just closed a new financing round worth as much as US$1 billion, according to Caixin.
The company closed a record-breaking Series E round last June, mopping up US$ 600 million from Tencent, Sinovation Ventures, Sequoia Capital and other investors.
The fresh financing would raise Mobike’s total funding amount to US$1.9 billion.
While Mobike is probably celebrating the fresh financing, the company’s archrival Ofo is also seeking to raise US$ 1 billion from investors including Alibaba. But the round hasn’t been closed yet as its major shareholder Didi reportedly refused to greenlight the deal.
Bike-sharing business is highly capital-intensive, part of why is that Chinese consumers are used to subsidies, coupons, and free trials. All companies in the sector are now pouring money to nab market shares from counterparts.
As the escalating war between Ofo and Mobike are hurting both, the two were said to eye a merger to cut costs and make profits. However, the deal eventually went sour.
Additionally, another tech juggernaut, Didi, is also looking to break into the market. It just launched its bike-sharing service Qing Ju in Chengdu, in addition to its previous acquisition of bankrupted Bluegogo and investments in Ofo.
Writer: Zhao Xiaochun
Editor: Ben Jiang
The continent of the 21st century: Venture VoicesThe continent of the 21st century: Venture Voices
Mile a minute: Early StageMile a minute: Early Stage
After years of diversification, Alibaba is still an e-commerce companyAfter years of diversification, Alibaba is still an e-commerce company
US adds Huawei to blacklist, spurring Sino-US tech decouplingUS adds Huawei to blacklist, spurring Sino-US tech decoupling
Chrisanti Indiana of Sociolla on building beauty’s ecosystem: Women in TechChrisanti Indiana of Sociolla on building beauty’s ecosystem: Women in Tech