Alibaba to Invest Hundreds of Millions of Dollars in Hello TransTech
COVID-19 and China

On June 27, Alibaba plans to invest hundreds of millions of dollars in Hello TransTech, the bike-sharing platform which includes ordinary bicycle, electric bike, electric motor car and hitchhiking(顺风车). This will be the 6th time for Hello TransTech acquiring investment from Alibaba.

Previously, Hello TransTech has raised 14 rounds of financing led by GGV(纪源资本)、Chengwei Capital(成为资本)、WM Motor(威马汽车)、Ant Financial(蚂蚁金服)、Fosun(复星集团)、Primavera-Capital(春华资本). Ant Financial and Primavera-Capital led the latest round of investment together on December 28, 2018.

According to people familiar with this matter, to create a two-wheel mobility ecosystem might be the reason for this investment. Hello TransTech not only ranks first in the regular bike field but also upgrades the equipments from bicycle to multiple two-wheel vehicles including electric motor and electric bike. This is a market larger than the four-wheel market.

Yanglei, co-founder&CEO of Hello TransTech, said that more than 20 million people use Hello TransTech to commute every day, creating a total record of 12 billion mobility service use.

It means that the mobility ecosystem of two wheels has created a huge market containing 200 million riding requirements as well as 700 million electric power requirements.

On June 12, Hello TransTech announced the establishment of a three-party joint venture (三方合资公司) with Ant Financial and CATL(宁德时代) at strategic cooperation conference held in Shanghai. Besides, the company invested CNY 1 billion in electric exchanging business(换电业务), the charging service for electric two-wheelers. In the meantime, Yanglei will be in charge of the new company.

According to people familiar with this matter, in the past two years, the cooperation between Ant Financial and Hello TransTech has created huge value and will generate more possibilities for Hello TransTech 's business and the synergy of the Alibaba ecosystem.

After completing this round of financing, Alibaba will benefit from Hello TransTech in traffic field and delivery services.

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