Despite Ofo crisis, a growing rival pockets funding

While one of the largest bike-share startups teeters on the brink of bankruptcy, a smaller but fast-growing rival has persuaded investors to give it even more cash.

Hellobike today told Tech in Asia that it has “secured billions of yuan in our latest round of fundraising, led by Primavera Capital and Ant Financial,” confirming reports yesterday on Chinese tech media.

Ant Financial, a spin-off from Alibaba, is a return investor.

Photo credit: Hellobike

The exact sum is a secret, though local reports say it’s RMB 4 billion, which works out at US$584 million.

Hellobike’s latest stats:
– In 300 Chinese cities
– Over 20 million daily rides
– 200 million registered users
– No word on active daily/monthly users

Unlike the top two bike apps, Ofo and Mobike, Hellobike has not expanded outside China.

The fresh cash comes a year to the day after it bagged US$500 million in its series D round.

Slowdown

The vote of confidence in Hellobike is arguably a surprise after a year of turmoil for bike-share startups around the world, with China-based Mobike and Ofo pulling out of dozens of cities as they struggled to make money.

Ofo seems the hardest hit, with more than 10 million users demanding deposit refunds as they fear the startup’s collapse, while Ofo’s CEO last week admitted contemplating bankruptcy.

“I told myself – just like I keep telling every Ofo team member – that there is hope in life and that we must withstand great pressure. We must also find ways to overcome big challenges,” wrote Dai Wei in a letter to Ofo staff.

Both Alibaba and Ant Financial have invested in Ofo.

Either Ant Financial knows Hellobike is doing something differently, or the tech giant hasn’t heard the old aphorism that the definition of insanity is doing the same thing over and over and expecting different results.

Converted from Chinese yuan. Rate: US$1 = RMB 6.85.