Ofo raising second half-billion-dollar round of 2017
June 12, 2017
Ofo is in the process of raising roughly $500 million at a valuation of about $3 billion, per Bloomberg. It would be the second massive round this year for the Chinese bike-sharing startup, following a $450 million funding in March that valued the company at an estimated $1 billion. And this year isn’t an anomaly—last year, Ofo pulled in at least $230 million, a huge amount of equity funding for a company that was founded in 2014.
The amount of capital being poured into Ofo is representative of the surge in VC funding for Chinese transportation companies. Mobike, another bike rental startup in the country, has also raised hundreds of millions of dollars in the past year; then there’s Didi Chuxing, the Beijing-based ridehailing giant that reached an estimated $60 billion valuation in April, making it one of the most valuable private companies in the world. In fact, Didi is a past investor in Ofo, a connection that makes some sense considering the shared elements of their respective businesses.