Mobike, a China-based startup which is among the fastest growing startups in the on-demand bike rental space, has managed to secure $600 million in its latest Series E round of funding.
The funding round was led by Tencent, along with the participation of its existing investors Sequoia Capital, TPG, and Hillhouse Capital. New investors who are pouring-in money for this round include BOCOM International, ICBC International, and asset management firm Farallon Capital.
This is the second funding round for the startup in the current year, and the biggest till date. Earlier this year, it raised over $300 million from investors like Tencent, Temasek, Foxconn and others. Total funding raised by the Beijing-based company now stands at $925 million.
The bikes offered by the startup are fitted with GPS trackers which allows them to be picked up from and left anywhere using a mobile app. The company says that it is operating more than five million bikes, and its 100 million registered users take 25 million trips per day at peak times.
Mobike is currently present in 100 cities, and has already achieved its target for the current year. It recently expanded to Singapore and has also announced plans to launch in UK by the end of this month.
But it seems that this is just the beginning for the two-years old company. With the new capital infusion, the company is now planning to expand its business worldwide. Davis Wang, CEO and Co-founder of Mobike, said,
We will accelerate the pace of global expansion and our new target is to be in 200 cities by the end of this year.
Along with expansion to other cities, the money will also be spent on developing R&D and optimizing the use of artificial intelligence and technologies — aimed to improve the user experience.
The biggest rival of Mobike is another Chinese company named Ofo, which has been backed with $580 million from the likes of Uber competitor Didi Chuxing and Russian-headquartered DST Global. It surpassed the $1 billion valuation mark in February this year when it announced $450 million Series D round.