Mobike, a China-based bicycle rental platform backed by internet group Tencent, has raised $1bn in new funding from undisclosed investors, Caixin Global reported yesterday, citing undisclosed sources.
Founded in 2015, Mobike has built an app-based bicycle sharing business with more than 200 million registered users that allows users to pick up and leave a bike anywhere once they have been used. It now spans 200 cities across 13 countries, having launched in Paris on Wednesday.
Although China’s overstuffed bike rental sector is beginning to thin out, Mobike remains in a long-running turf war with Ofo, the two being jointly responsible for the lion’s share of the market.
The sources told Caixin that Mobike raised the funding after talks over a merger with Ofo, similar to the one that created ride hailing unicorn Didi Chuxing, broke down.
Didi has formed a partnership with bike rental service Bluegogo and launched its first branded bicycles in the city of Chengdu this week. Mobike, in turn, launched a ride hailing service called Mobike Chuxing last month with $300m of capital.
Mobike had raised a total of $1bn as of its last funding, a $600m Tencent-led round in June 2017 co-led by Tencent and backed by financial services firms Bocom International and ICBC International, Farallon Capital, Hillhouse Capital, Sequoia Capital and TPG.
Bertelsmann Asia Investments, a subsidiary of media group Bertelsmann, was among the company’s earlier investors, as were Joy Capital and Panda Capital, before Tencent, Sequoua, Hillhouse, Warburg Pincus, Qiming Venture Partners and private investor Wang Xing provided a nine-figure sum in late 2016.
Mobike raised $215m in a January 2017 series D round co-led by Tencent and Warburg Pincus that also featured travel services provider Ctrip, hospitality chain Huazhu Hotels, Sequoia, Hillhouse and TPG, and contract manufacturer Foxconn, Hillhouse and Temasek added another $85m shortly afterwards.