Bicycle-rental app Mobike draws investment from Temasek Holdings

Singapore state investor Temasek Holdings has jumped into China’s nascent but highly competitive bike-on-demand market by investing into Mobike, a leading app for bike rentals on the mainland.

Beijing-headquartered Mobike announced on Monday that it has secured new investment from Temasek and Hillhouse Capital, a leading global investment management firm based in Asia, bringing its total funding in 2017 to US$ 300 million.

Mobike refused to reveal the exact investment amount from the two companies. The investment is the latest after Mobike announced a series D fundraising of US$ 215 million led by Warburg Pincus in early January, which was followed by a strategic investment from Foxconn.

“We are the clear leader in our industry globally, and are excited that our investors and other strategic partners recognise and support our ambitious goal to transform urban transport globally. In 2017, we will continue to invest in enhancing our technology, increasing our production capacity, recruiting top talent to our team, and in promoting Mobike’s innovative model internationally,” said Davis Wang, co-founder and CEO of Mobike in a statement.

Wang claimed that the US$ 215 funding has made Mobike the best capitalised company in China’s Uber-for-bike industry where a dozen start-ups are tapping into the burgeoning on-demand economy in the country by enabling people to rent a bike via smartphone.

Mobike and the Beijing-based Ofo are leading players in the bike on demand market, which has about 17 companies operating in the sector in China.