January 7, 2018 / 4:29 PM / 2 months ago

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

BEIJING (Reuters) - 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 ($3 million).

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/Files

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 $450 million in May last year from a range of investors, including Chinese ride-sharing service Didi Chuxing.

($1 = 6.4875 Chinese yuan renminbi)

Reporting by Josephine Mason and Meng Meng; Editing by Susan Fenton

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