China bike-sharing operator Hellobike raises $350m
Chinese bike-sharing operator Hellobike has raised $350 million in a Series D round of funding from several investors including Alibaba Group’s Ant Financial and Chengwei Capital.
It’s the first funding round for the company following its merger two months ago with Youon Bike, another bike-sharing firm listed on the Shanghai Stock Exchange. Chinese electric vehicle start-up WM Motor and bicycles manufacturer Tianjin Fuji-Ta Bicycle also took part in the latest round.
“The success of this funding round is due to the market’s recognition of Hellobike’s operational capability and business development potential,” according to a statement. “Hellobike has grown fast amid a shake-up in China’s bike-sharing industry.”
Launched in 2016, Hellobike is a latecomer to the bike-sharing industry. Due to tough competition in major Chinese cities like Beijing and Shanghai, it focuses on lower-tier cities. The company received a Series A round from GGV Capital, Grains Valley Capital, Joy Capital and Bertelsmann Asia Investments in November 2016. Three months later, GGV led an extended Series A round for the company. Chengwei led a Series B round in April, while WM Motor made a strategic investment in June.
Hellobike claims to be China's third-largest bike-sharing company, but it’s still far behind leading players Mobike and Ofo. As of November, it operated in more than 100 cities with over 80 million registered users. Youon started in 2010 as an operator of government-backed bike rental schemes in small cities. It entered the bike-sharing market with technology-based machines in the second half of 2016 and then listed in August. Previous backers include Ant Financial and Shenzhen Capital Group.
Mobike and Ofo are estimated to account for a 95% share of the bike-sharing market. Each one has raised more than $1 billion in funding from private equity and strategic investors over the last two years. Ant Financial is also an investor in Ofo. This effective duopoly has forced out numerous smaller players. According to local media, at least six bike-sharing start-ups, including VC-backed Bulegogo and Mingbike, have gone bankrupt.
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