China’s elephantine tech firms like Didi Chuxing, Ant Financial, and alike are funding a bicycle sharing startup, Ofo. The Beijing-based Ofo wants to raise $500 million seeking a $3 billion valuation.
Ofo aiming to raise a fund of $500 million
Ofo, a bicycle sharing company is aiming to raise a fund of $500 million just months after managing a fund $450 million. Months before the startup secured the fund from different leading tech firms in China. Moreover, earning such lump sum amount energizing Ofo to compete in the market. However, so far the bike sharing enterprise secured minimum $650 million over the span of time. As a matter of fact, it earned a valuation of $2 billion already. In fact, the valuation came just 3 years after the establishment of the company.The fundraising for Ofo happened really fast. Over and above that by this year it wants to serve as many as 200 cities in 20 countries. Additionally, raising as much as $500 it wants a valuation at about $3 billion.
Cycling was a part of the Chinese lifestyle. Traditionally, hardworking Chinese people used cycles for the daily commute. Because of increasing traffic jams in Chinese cities bicycles are gaining popularity rapidly. And companies like Ofo and Mobike are adopting the increasing popularity to do profit making businesses with the help of technology.