Beijing-based Black Hole Capital, a venture firm founded by Zhang Liang, the son of Chinese property giant R&F Properties' co-founder Zhang Li, has led a RMB400 million (US$58 million) new funding round in Bluegogo, a Tianjin-based bike sharing company, according to Chinese media reports.
Smart Xintong, a Shenzhen-based healthcare equipment developer, also participated in the round, which valued Bluegogo at RMB1 billion (US$140 million) post-money.
Founded in November 2016, Bluegogo currently operates in five cities, including Shenzhen, Guangdong, Chengdu, Nanjing and Foshan. It has deployed 150,000 bikes and has a total of 2,530,000 registered users, the company claimed.
It plans to expand its business to Beijing in February, as well as further expanding into overseas cities following its January launch in San Francisco.
Bluegogo previously raised a RMB58 million (US$8.4 million) series A round from Zhen Fund and Sinovation Ventures in 2015.
The bike sharing industry in China has gotten very crowded, with nearly half a billion U.S. dollars invested into numerous start-ups. But the industry is showing signs of saturation, with a bike sharing company Kala shutting down last week after just 30 days of operation.
Founded in 2014, Black Hole focuses on the Internet and mobile Internet, hi-tech, smart hardware, consumer goods and services, and healthcare sectors. It led a RMB100 million (US$21 million) series A+ round in another bike sharing firm Ubike in November last year.