Business· Transportation

Didi, Hellobike deepen pockets as competition in mobility sector intensifies

minutes 2019/07/19 08:33:04

Jul 19, 2019 (China Knowledge) -

Didi, Hellobike, Fund raising, IPO, China sharing economy

Didi Chuxing is set to receive USD 2 bln in funding while bike-sharing firm Hellobike successfully raised USD 400 mln in an Ant Financial-led funding round. Chinese mobility companies are beefing up their funds as competition in the sector intensifies.

Beijing-based Didi Chuxing is selling additional shares to raise USD 2 bln, which will effectively raise the firm’s paper valuation to around USD 62 bln.

The latest fundraising is said to boost Didi, the biggest market player in China’s ride-hailing industry, where the company is still burying massive amounts of cash up to USD 1.5 bln last year. The company’s balance sheet is also plagued with widening losses as it faces strict regulations, stiff local competition and a public outrage involving the deaths of two passengers in its cars last year.

SoftBank and other investors held talks with Didi to raise capital for its self-driving car business. This comes after SoftBank, Didi’s largest shareholder has expressed interest in self-driving cars.

Meanwhile, bike-sharing company Hellobike secured USD 400 mln in a funding round led by Ant Financial at a paper valuation of USD 5 bln. The company had previously raised two rounds of funding last year, totalling RMB 4 bln. Co-founder Li Kaizhu said during an interview in January that the company is looking at initial public offering without revealing any date.

Alibaba-backed Hellobike, which is the country’s third-largest bike-sharing player, earlier partnered with Ant Financial and CATL to invest RMB 1 bln to set up an e-bike battery joint venture.

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