Telecommunications and internet group SoftBank is set to invest in China-based bicycle rental service Hellobike at a $2bn valuation, in a round expected to reach $400m, Reuters reported today.
Private equity firm Primavera Capital will also participate in the round, people with knowledge of the matter told Reuters. SoftBank’s discussions with Hellobike were originally reported by The Information yesterday.
Founded in 2016, Hellobike operates an app-based bicycle sharing service with more than 200 million registered users that focuses on third and fourth-tier Chinese cities. It is the third most popular in China, behind Ofo and Mobike, according to research cited by Reuters.
The prospective round follows a report in South China Morning Post last month stating that Ofo had proposed a merger with Hellobike. The company has also recently expanded into ride hailing.
Hellobike has so far raised more than $1.5bn in funding, most recently securing $321m from Ant Financial, the financial services affiliate of e-commerce group Alibaba, in June this year at a $1.47bn valuation.
Electric vehicle producer WM Motor invested a nine-figure renminbi (RMB100m = $14.7m) amount in Hellobike in July 2017, and Ant Financial became an investor in October when its portfolio company Youon Ditan merged with Hellobike.
Ant Financial, WM Motor and Fosun Capital, a subsidiary of diversified conglomerate Fosun, joined GGV Capital and Chengwei Capital to supply $503m in series D funding for the company in December 2017, before a $700m Ant and Fosun-backed series E1 round in April.
Photo courtesy of Hellobike.
