VC-backed China bus service start-up raises $26m

Fujian Newchoice Pipe Technology said in a filing that it has contributed RMB128 million in the round, taking an 18.69% stake. Domestic manager Shenzhen Weiyi Equity Investment and a government-backed fund managed by Technology Financial Group invested RMB20 million and RMB15 million, respectively. Existing investor investor Northern Light Venture Capital (NLVC) committed RMB10 million.

Dada Bus was launched in March last year. Through an app, users can reserve bus seats for journeys to work and other short distance travel. The company charges a RMB0.4 per kilometer transportation fee, which is nearly the same price as a metro ticket.

Through partnerships with offline bus operators, Dada provides services on 2,000 routes in 13 Chinese cities, including Shenzhen, Shanghai and Guangzhou. The company claims that its average travel time is approximately two thirds shorter than for public buses, thanks to the optimization of self-planned routes and pick-up and drop-off points.

The start-up raised RMB5 million in seed funding and then received a RMB37 million Series A round last May. Four months later, it secured RMB200 million from NLVC and Jingqiao Capital.

Newchoice supplies drainage pipe and other plastic raw materials in China. The investment in Dadabus is part of the company's plan to expand into new energy cars. Last year, it acquired Fujian-based Wanrun New Energy Technology, which develops energy-saving vehicles. Newchoice set up a new subsidiary with Wanrun that will start a new energy car rental business.

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• Topics
• Greater China
• Venture
• Expansion
• Technology
• China
• Venture
• TMT
• Transportation
• Growth capital
• Northern Light Venture Capital