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Mobike closes in on USD 100 mln management buyout of European operations

CKN
minutes 2019/04/15 04:30:04
2,555
mobike; bike-sharing

Apr 15, 2019 (China Knowledge) - Chinese bike-sharing operator Mobike is nearing the completion of a management buyout of its European unit according to its owner Meituan-Dianping.

The buyout which is valued at USD 100 million, marks yet another retreat for the company in an overseas market after laying-off staff, contractors and third-party agency staff across Asia Pacific as the company scales back on its foreign operations to focus on its home market.

Mobike which was founded in 2015 claims to have more than 100 million registered users and 7 million bikes across the world. In January last year, the company raised USD 1 billion from a group of investors before being acquired by Tencent-backed Meituan-Dianping for USD 2.7 billion. Mobike ventured to Europe in June 2017 and currently has operations in 23 European cities.

Chinese-bike sharing operators which were among the fastest-growing startups just over a year ago are now being forced to scale back their international operations amid growing headwinds and increasing difficulty in fund-raising back home.

Last year, Mobike’s parent company Meituan-Dianping reported net losses of RMB 8.5 billion, nearly double from the year before with Mobike contributing to RMB 4.5 billion of these losses, prompting the parent company to restructure its operations and exit most of its overseas operations to cut losses.

Mobike’s European buyout is currently lead by its European regional general manager and other senior executives.

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