Technology

Ofo, Chinese bike-sharing firm, raises $450 million in latest funding round

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Students pose for pictures as they use ofo sharing bicycles at a campus in Zhengzhou, Henan province, China, September 6, 2016. China Daily/via REUTERS/File Photo

Chinese bike-sharing start-up ofo said it has raised $450 million in a fresh round of funding, as the firm faces up against deep-pocketed rival Mobike in one of the hottest sectors to attract tech investors.

SHANGHAI/HONG KONG Chinese bike-sharing start-up ofo said it has raised $450 million in a fresh round of funding, as the firm faces up against deep-pocketed rival Mobike in one of the hottest sectors to attract tech investors.

Investment group DST Global, ride-hailing giant Didi Chuxing and CITIC’s private equity arm were among investors, the company said in a statement.

Ofo and Mobike are two of a growing number of bike-sharing services in China that allow users to find, unlock and pay to rent the bicycles through a smartphone app, targeting younger consumers tired of congested roads and public transport.

Strong growth in the sector saw Mobike close a $215 million funding round last month, led by Tencent Holdings and Warburg Pincus LLC.

Ofo has previously raised funds from investors including Chinese smartphone maker Xiaomi and Didi.

Since mid-2015 ofo has accumulated over 20 million registered users.

(Reporting by Adam Jourdan and Sijia Jiang- Editing by Edwina Gibbs)

Source: http://www.reuters.com/article/us-china-ofo-fundraising-idUSKBN1683C9