Chinese Bike-sharing Startup Ofo raised $866 Million led by Alibaba

Beijing-based bike-sharing company Ofo in the new round of financing led by Alibaba Group Holding Ltd (NYSE: BABA) has raised $866 million, which is the largest single-round investment in the bike-sharing sector in China so far.

Founded in 2014, Ofo has accumulated almost 200 million users in China and operates in 20 overseas countries including the US, UK, France and Singapore, in 250 cities.

In addition to Alibaba, an existing investor, Alibaba affiliate Ant Financial and Chinese venture capital firms, Haofeng Group, Tianhe Capital and Junli Capital participated in the round, said in a statement released from Ofo.

Last July Ofo raised US$700 million in the Series E round of financing led by Alibaba, while the largest bike-sharing company Mobike’s latest round was US$600 million in a Series E round led by Alibaba’s biggest rival Tencent Holdings last June.

China’s bike-sharing market has been consolidated to a large extent, with 20 startups in this sector filed bankruptcy, according to South China Morning Post. Currently, Ofo and Mobike account for over 90 percent of the market share.

There is always a rumor that Ofo will merger with Mobike since fierce competition between them is consuming large amount of capital. However, both Alibaba and Tencent are reportedly against the deal since each wants to gain control of China’s bike-sharing market.

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