Asian Tech Press (Aug 30) -- Cao Cao Mobility, commonly known as Caocao Chuxing, Geely-backed ride-hailing platform, has recently completed a new round of financing, with total financing amounting to billions of yuan, according to sources familiar with the matter.
In this regard, the person in charge said "no comment".
Industry analysts say that if the news is true, the financing will be the first domestic equity financing for the ride-hailing industry in China in 2021.
Previously, there were media reports that Caocao had completed its B round of financing, but that statement was also not officially acknowledged.
Public information shows that Caocao is a ride-hailing platform established in May 2015, currently providing online taxi booking services in 62 cities in China.
Some information shows that on August 4 this year, Caocao added Zhejiang Geely Holding Group Co., Ltd. (Geely) as a new shareholder, and the registered capital increased from about 366 million yuan ($56.59 million) to about 433 million yuan ($66.95 million).
After the completion of the capital increase, Geely Technology Group, a subsidiary of Geely and Daimler Mobility AG, will become the largest shareholder with 77.33%. And Geely holds 15.42% of the shares, and contributes 66.72 million yuan ($10.32 million) as the second-largest shareholder.
Earlier, Caocao experienced two rounds of financing, respectively, 1 billion yuan ($154.63 million) from Zhejiang Silicon Paradise Asset Management Group Co.,Ltd., Zheshang Venture Capital Co., Ltd., and Hangzhou Longqi Investment Management Co. in January 2018, and an investment from Zheshang Venture Capital in May 2018, although the amount of the deal was not disclosed.
In the past two years, the ride-hailing industry has entered a "capital winter" and the pace of financing has significantly weakened. Previously, Geely further supported Caocao by way of capital increase. And this time Caocao received new financing, partly because investors may see new possibilities in the industry.
On the evening of July 2 this year, China's State Internet Information Office (SIIO) announced to launch cybersecurity reviews of DiDi Global Inc. (DIDI). Later, Didi-related apps were taken down from the app stores.
The series of crackdowns suffered by Didi represents a notable opportunity for other rival platforms. The new funding round received by Didi's rival Caocao means that investors are bullish on the ride-hailing market.
(US$1 = 6.4671 yuan)
