Beijing-based bike rental service Ofo will launch its services in India in a tie-up with Paytm. Reportedly, the Ofo bicycle sharing app will be available on Paytm app along with its standalone mobile app.
The move makes sense as Alibaba is a major investor in both the companies. While Paytm already has a stronghold in the Indian digital payments segment, it will now help Ofo to expand its operations in the country. Ofo raised $700 Mn from Alibaba in July 2017.
Valued at $2 Bn, the unicorn is expected to launch the bike rental services first in Chennai, followed by Ahmedabad, Indore, and Bengaluru. Users can avail bike rental services at a price of $1 per hour.
Ofo is also said to have signed a MoU with Pune Municipal Corporation recently. Under this MoU, it plans to create city-wide bicycle networks.
Inc42 earlier reported Ofo’s plans to launch in India by H1 2018 in October 2017. Boasting a user base spread across 170 cities in China, Singapore, the US, Austria, Thailand, the UK, Russia, Italy, Australia and Kazakhstan, Ofo serves as a “non-docking” platform that allows users to track as well as lock and unlock their bicycles remotely.
Since its inception in 2014, the bike rental startup has secured $1.29 Bn funding in eight rounds from up to 21 investors including Ant Financial, Didi Chuxing, DST Global, Shunwei Capital, Coatue Management, Citic PE, Hony Capital, Matrix Partners China, ZhenFund, GSR Ventures, Will Hunting Capital and Hongdao Capital.