Chinese bike-sharing startup ofo announced the successful closing of a funding round worth over $700 million on Thursday, led by online retail giant Alibaba.
The company has become the latest startup to engage in the sharing economy, allowing consumers to unlock a bike and ride to their destination instead of using the congested public transport in Chinese cities.
The funding round was led by Chinese online retailer Alibaba, alongside Hony Capital and CITIC Private Equity. Additional participation came from existing investors Didi Chuxing and DST Global.
“We will further upgrade our service for better user experiences, accelerate our global expansion strategy and continue to lead the bike-sharing industry,” said Dai Wei, founder and CEO of Ofo, in a prepared statement.
“Our vision is to unlock every corner of the world, and make Ofo the universal language.”
The announcement comes after rival bicycle-sharing startup Mobike announced it had closed a $600 million funding round.
Mobike, one ofo’s biggest competitors, currently operates in around 100 Chinese cities and has raised over $900 million since October. Mobike’s most recent round counted Chinese tech giant Tencent, Sequoia Capital, TPG and Hillhouse Capital amongst its biggest investors.