China's FAW Car buys 10 percent stake in Mobike's new car-sharing unit

China's FAW Car buys 10 percent stake in Mobike's new car-sharing unit

The logo of Faw is seen on the car maker's booth at the 2016 Moscow International Auto Salon in Moscow, Russia, August 24, 2016. REUTERS/Maxim Shemetov
BEIJING: FAW Car Co Ltd said on Sunday it was taking a 10 percent stake in Chinese bicycle-sharing startup Mobike's new car-sharing unit Mobike Chuxing Technology Co.Mobike Chuxing was set up in December with registered capital of 20 million yuan (US$3 million).With the strategic investment, FAW will provide electric cars for the project.FAW, in a statement, said it had signed a deal to buy the stake but did not disclose financial details.The investment will not have a significant impact on FAW's earnings. Mobike, whose backers include Tencent and Sequoia, has 100 million users and supports roughly 25 million rides a day.Its top competitor, ofo, raised US$450 million in May last year from a range of investors, including Chinese ride-sharing service Didi Chuxing.
(Reporting by Josephine Mason and Meng Meng; Editing by Susan Fenton)
Source: Reuters
 Source : http://www.channelnewsasia.com/news/business/china-s-faw-car-buys-10-percent-stake-in-mobike-s-new-car-sharing-unit-9840568