Ofo, the Chinese bike-sharing business venture, claimed this week that it has lifted over $700 Million in its new round of funding that was managed by Alibaba Group and two different firms. This fund raising round was claimed to be the largest in the industry that has drawn attention of investors.
Ofo claimed in a statement that apart from Alibaba, the “series E” round of funding was guided by CITIC Private Equity and Hony Capital, with extra investment from present investors DST Global and Didi Chuxing. It refused to comment on its estimation. CEO and founder of Ofo, Dai Wei, had claimed in April that the company was esteemed at $2 Billion.
Rival Mobike and Ofo are the 2 largest Chinese firms providing bike-sharing services at abroad and home, drawing attention to large amounts of business investments. The new round of funding of Ofo comes post when Mobike declared a $600 Million investment, its biggest financing round till date, last month headed by Tencent Holdings. Ofo estimates to organize 20 Million bikes and grow its service in 20 countries to 200 cities by the end of 2017, the company claimed to the media. It says that it presently has linked more than 6.5 Million bikes with riders in more than 150 cities across 5 countries, making over 25 Million daily transactions.
Alibaba, creating the investment post its partner Ant Financial took part in the last round, said that Ofo re-described short-distance travel with a footprint offering of low carbon emission. “Ofo is the current leader in the industry and we back its open platform approach,” Joe Tsai, Executive Vice Chairman, Alibaba, claimed to the media in a statement. Mobike, supported by Warburg Pincus and Sequoia, too is targeting to expand internationally and declared a Japanese secondary division last month.
Well, in the cutthroat competition in the market, the service provided by Ofo is the main reason as to why the company is dominating the market. And it is also the only reason as to why the company was able to raise $700 Million in its round of funding. We wish all the luck to the company.