Chinese bike-sharing company Ofo valued upwards of $2 billion

In its latest funding round, led by the Alibaba Group, the company raised $700 million.

On Thursday, Ofo, a Chinese bike-sharing start-up stated it has raised more than $700 million in its latest funding round, led by Alibaba Group and two others.

This is the biggest such fund raiser that has drawn keen investor attention in the bike-sharing business so far.

As per Ofo’s statement, besides Alibaba, the series E funding was led by CITIC Private Equity and Hony Capital with additional investment from current investors DST Global and Didi Chuxing.

Ofo has declined to comment on its valuation. However, as per Dai Wei, Ofo’s CEO and founder, the company had been valued upwards of $2 billion in its funding round in April.

Mobike and Ofo are two of the biggest Chinese bike-sharing companies that are offering their services at home and abroad and have attracted large investor attention.

Last month, during Mobike latest funding round, Tencent Holdings announced a $600 million investment in the company.

According to Ofo, by the end of 2017, it plans on deploying 20 million bikes across 20 countries and expand its services to 200 cities around the globe. Currently, it “has connected over 6.5 million bikes to riders in 150 cities across five countries, generating more than 25 million transactions daily.”

As per Alibaba, Ofo is redefining short-distance commute with a low-carbon footprint offering.

“Ofo is the industry leader and we support its open platform strategy,” said Joe Tsai, Alibaba’s executive vice chairman.

Backed by Warburg Pincus and Sequoia, Mobike is also aiming to expand its footprint globally and last month it announced the creation of a subsidiary in Japan.

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Categories: Creativity, Entrepreneurship, HR & Organization, Strategy, Sustainability

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