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China's Mobike gets 300m USD funding to expand overseas

Xinhua | Updated: 2017-02-21 07:47

BEIJING - China's leading bicycle-sharing service provider Mobike Technology has secured more than 300 million U.S. dollars in the latest round of funding since January this year, the company's CEO Wang Xiaofeng said Monday.

Mobike received equity investment from Singapore's Temasek and add-on investment from Hillhouse Capital, which led Mobike's last round of funding.

Wang said Mobike will use the money to explore the global market by duplicating its business model elsewhere. He said the company will also spend more on research and development (R&D), manufacturing, and recruitment.

Mobike and its market rival ofo revolutionized China's commuting market after they began app-based bicycle sharing services.

Users download the Mobike app and pay a deposit to start using the service. Bikes are parked on the street and unlocked by scanning the QR code on the frame.

Each orange bike is equipped with a GPS transmitter so they can be located.

The rental cost, around 1 yuan (15 U.S. cents) for half an hour, is deducted from the deposit. All transactions are done on electronic payment platforms.

Wang said Mobike bicycles are now available in 21 cities. A total of 200 million rides have been recorded since the company launched its first service in Shanghai about ten months ago.

The number of Mobike's active users was estimated around 5.85 million, far surpassing its other rivals, according to a survey conducted at the beginning of the year by independent market research firm iResearch.

In January, Mobike entered into a strategic partnership with Foxconn to double its bike manufacturing capacity to over 10 million units a year.

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