A Chinese electric vehicle sharing start-up PonyCar has raised RMB250 million (US$37 million) in a series C round led by Zhihe Chuxing. This is the third financing round completed by the 13-month-old company, which has raised RMB550 million (US$83 million) in total since its founding last October.
Since the first GPS-positioned, smartphone-enabled shared bikes were placed on the streets of Shanghai in December 2015, the so-called bike sharing sector has shed its training wheels and expanded with incredible speed in China.
China’s mushrooming bike sharing companies have aggregated RMB6 billion (US$872 million) or more in user deposits, according to industry observers. These deposits, growing everyday and currently existing in a regulatory vacuum, may be partially used for high-yielding investments and in turn present massive financial risks to consumers.