Dadabus, a Shenzhen-based mobile app developer providing bus booking services, has received RMB128 million (US$20 million) strategic investment from Shenzhen-listed plastic pipe maker, Fujian Newchoice Pipe Technology Co., Ltd., according to a disclosure document (in Chinese).
In return, Newchoice Pipe will obtain a 18.69% stake in the start-up, meaning the two-year-old start-up is valued at US$685 million.
The investment in Dadabus is part of Newchoice Pipe’s expansion into new energy cars sector. The company previously made small investments in two new energy companies in China.
Dadabus says it plans to cooperate with Newchoice Pipe on deploying more new energy buses.
Founded in March 2014, Dadabus previously completed RMB200 million (US$32 million) series B round of financing from Northern Light Northern Light Venture Capital and Jinqiao Capital in September 2015.
In April and May 2015, the company raised RMB42 million in angel and series A funding round, according to its website.
Dadabus targets office workers in major Chinese cities. Users can reserve buses, mostly for going to work and returning home.
It currently operates over 2,000 customized bus routes, serving two million users in 30 major Chinese cities, according to the disclosure document.