Jiangsu Yonganxing Low Carbon Technology, a subsidiary of China-based bicycle rental service Youon Bike, has agreed RMB810m ($123m) in funding from investors including financial services provider Ant Financial, China Money Network reported yesterday.
Ant Financial, an affiliate of e-commerce group Alibaba, acquired a 30.5% stake in the unit through its investment, which was made by subsidiary Shanghai Yunxin Venture Capital Management.
The round was filled out by venture capital firm Shenzhen Capital Group and Liyang Hongtu New Economic Venture Capital Fund, an investment fund overseen by the city of Liyang’s municipal government. Each will supply about $15m of the funding.
Youon runs one of China’s now ubiquitous GPS-equipped urban bicycle sharing services, and it raised $87m last month when it went public in its home country. Yonganxing will take the company’s business model to smaller cities and towns.
An Alibaba subsidiary now part of Ant Financial, invested RMB100m in Youon in 2014 before participating in a February 2017 round of undisclosed size together with IDG Capital and Shenzhen Capital. It owns 8.3% of Youon’s shares, according to China Money Network.