Temasek Enters Bike Rental Industry in China

Temasek, the investment company that is state owned in Singapore, has jumped into the on demand bike war in China after investing in startup MoBike.

The competition in ride-sharing in China is no longer headline news. The battle that pitted Didi Chuxing and Uber is over after Uber was acquired by Didi Chuxing the business based in China.

The new drama in town is all about bikes, new services that let a person find a bike rental by using a mobile app and bikes that are GPS-enabled. The busiest of all startups in that field is MoBike.

MoBike, based in Beijing, announced a funding round of $215 million with its biggest investor Tencent last January and weeks later another investment by Foxconn.

Today, MoBike announced that a new investment was led by Temasek, an early investor in Alibaba that backed rival Grab a rival with Uber in Asia, with participation by Hillhouse Capital.

The company said the new money raises the total amount received for 2017 to over $300 million, with the most recent two deals contributing $85 million to its company, but would not disclose any more information.

It is more forthcoming for its financial numbers of the business. It said it served more than 10 million users who completed more than 200 million rides that were paid for using its service.

It began in cities considered tier-one, but since has expanded to more than 21 cities in China that includes Shanghai, Beijing, Shenzhen and Guangzhou.

MoBike has claimed it reached nearly six million users weekly which is over four times greater than its closest rival.

Beyond becoming involved in the most recent trend across China, the investment by Temasek is a boon for the plans of international expansion by MoBike.

The company has earmarked Singapore as its first international location and Temasek is as good as any investor it can have.

In 2017, the company will be continuing to invest as a way to enhance its technology, increase its production capacity, recruiting talent for its team and promoting the innovated model outside China, said Davis Wang the company’s CEO.

In a big sign of the eagerness for expansion in the industry Ofo, a rival for MoBike backed by Didi, the giant in ride-hailing in China expanded to Singapore on Monday.

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