Alibaba is investing $700m in bike-sharing startup

eCommerce giant, Alibaba has led a $700 million Series E funding round for Ofo, a two billion-dollar-valued bike-sharing company. Other investors in this round Hony Capital, CITIC Private Equity, Didi and DST Global.

According to report, this is the first time Alibaba has officially thrown its lot into China’s fast-growing bike sharing space, has risen to replace replace taxis, ride-hailing apps and other transportation options for many people taking short journeys across China. Users simply scan the QR code on a bicycle to start their ride and, with each bike carrying a GPS chip, they can be left anywhere when finished.

Ant Financial which is Alibba’s finance-focused affiliate, invested in Ofo in April, and now the parent company itself has followed up to lead this financing round. This new round is the largest that the bike-sharing industry has seen to date, just edging ahead of the $600 million round that Ofo’s close rival Mobike raised last month. Notably, Mobike counts Alibaba’s arch enemy Tencent among its financial backers.

“Ofo is committed to providing global users with a convenient, efficient, green and healthy way of travel,” Dai Wei, founder and CEO of Ofo, said in a statement. “We will further upgrade our service for better user experiences, accelerate our global expansion strategy, and continue to lead the bike-sharing industry.”