China’s bike-sharing revolution is definitely thriving, and the capital hungry industry is seeing new players join the fray, even as existing ones are riding the boom, backed up mega funding rounds. This also comes at a time when investment in other sharing economy startups in that country has cooled.
This is the third venture funding deal in the bike-sharing space in two weeks, the China Money Network reported. Grains Valley Venture Capital, a RMB fund focused on the Internet, life science and artificial intelligence, also participated in the Hellobike transaction.
Hellobike plans to use the latest proceeds upgrade its products and expand its team as well as its coverage into 10 cities in the next two months.
Founded last September 2016 in Suzhou, Hellobike now also covers two additional cities, Ningbo and Xiamen. Its bikes are enabled with smart locks and GPS functions that allows users to locate the nearest available bike.
Two months ago, the startup raised an undisclosed sum of capital in a series A round from GGV Capital.
Fellow bike-sharing startup Mobike, recently completed a record $215 million in a Series D from Chinese Internet giant Tencent Holdings Ltd, Sequoia Capital China, Hillhouse Capital, and other investors.
Another similar startup Qibei Tech had raised $14 million in series A round from Florin Investment Group, and Hunyuan Investment this January.
In November 2016, Shanghai-based Ubike raised $22 million in a Series A round led by a unit of Shenzhen-listed chemicals and trading firm Jiangsu Huaxicun Co Ltd, backed by Black Hole Capital, Yicun Capital, existing investor Zhonglu Capital, among others.
A month before that, local bicycle-sharing platform ofo raised $130 million in a Series C round led by car-sharing service provider Didi Chuxing.