SHANGHAI – Chinese bicycle-sharing company Ofo has raised $886 million in a new funding round led by Chinese e-commerce giant Alibaba, Ofo said on Tuesday.
This new round of funding is now the largest in China’s competitive bike-sharing sector and exceeds the $700 million collected by the same company in July last year, the company said.
“As the global leader in the bike-sharing sector, Ofo has been transitioning from a phase of rapid growth to a stage of high-quality development,” company founder Dai Wei said.
This round of funding, like the earlier one, has been led by the Alibaba group through its Ant Financial wing.
Ofo and its rival Mobike revolutionized the bike-sharing sector two years ago by including the possibility that the user can park the bike practically anywhere in their city and not at points previously designated by the city council or the managers of these businesses.
Using this system, when the user sees a free bike or finds it through a mobile app they can unlock it and rent it for the required period and park it after arriving at their destination.
Each bike is equipped with GPS and can be located in case of loss or theft.