Ofo is a new Chinese startup that can revolutionize the bike-sharing system. Its promising potential attracted Alibaba Group itself to organize its biggest funding round as of recently. The results were impressive showing a total investment of $700 million. Therefore, the Chinese dockless bike startup enjoyed probably the largest such efforts in the business industry.
Ofo Is Competing with Mobike for Market Niche Domination
There were also Hony Capital and CITIC Private Equity that worked side by side Alibaba to boost Ofo’s business potential. DST Global and Didi Chuxing became investors in this startup in the process. However, there’s no official statement to mark its new value. The founder and CEO of the company, Dai Wei, declared back in April that his project was worth more than $2 billion.
The biggest rival to Ofo is Mobike. They both do a great job offering quality bike-sharing services in both China and foreign countries. Their appeal is strong enough to recruit valuable venture investors by their side. Last month, Mobike was ahead of the game thanks to a fundraising event that brought $600 million of investments. Behind these efforts was Tencent Holdings. However, Ofo managed to catch up and score even a better series E of funds.
The Chinese Dockless Bike Startup Currently Owns 6.5 Million Bikes across Five Countries
With a new generous budget in its hands, Ofo has big plans for expansion. The dockless bike startup intends to deploy a total of 20 million bikes which will be enough to seize 200 cities in 20 different countries. The operation has the end of 2017 as a deadline. This would be a great addition to company’s current setting. Its database enlisted 6.5 million bikes to serve people from 150 cities across five countries. On top of that, Ofo receives 25 million transactions on a daily basis. Their services present a viable solution to problematic traffic jams in overcrowded cities.
Alibaba was persuaded to take part in the development of this startup thanks to its potential to revolutionize short-distance commute. The company is in tune with environmental causes through its low-carbon footprint services. Ofo won’t give up its dream to achieve global presence. Last month, the company announced plans to open a Japanese office.
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