Caixin
Sep 07, 2021 05:23 PM
BUSINESS

Ride-Hailing Firm Cao Cao Hauls In $590 Million From Suzhou Backers

What’s new: Cao Cao Mobility said it has raised 3.8 billion yuan ($589 million) in its latest funding round, as the ride-hailing platform has seen a boost in its business in the wake of the government’s cybersecurity investigation into industry leader Didi.

Cao Cao, the ride-hailing unit of automaker Geely’s parent company, said in a statement on Monday that it had completed its Series B funding round with five investors based in the eastern city of Suzhou, namely Suzhou Xiangcheng Financial Holding Group, Suzhou High-Speed Rail New City Group, Suzhou Urban Investment Company, ABCI Suzhou Company, and Suzhou Innovation Capital.

The platform said it will use the fresh funds for research and development, to expand its business, and to improve service quality and drivers’ safety.

Its Series A funding round in January 2018 raised the company 1 billion yuan from investors including Silicon Paradise Asset Management and Zheshang Venture Capital.

The background: Established in 2015, Cao Cao operates in 62 cities in China and has more than 60 million registered users. The company said it recorded a 150% jump in ride-hailing orders in July compared with a year ago and has 10 million monthly active users.

The jump in traffic comes after Didi Global Inc. was placed under review on July 1, with regulators citing national cybersecurity and personal data safety concerns after it rushed to complete its $4.4 billion U.S. IPO at the end of June.

Within days of the listing, Didi was ordered to stop registering new users while the investigation was ongoing and had its main ride-hailing app removed from Chinese app stores.

 Read more  
Cover Series: How Didi’s Rush to Raise Funds in U.S. Backfired (Part 1)

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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