Chinese Bike-Sharing Startup Hello Files US IPO

Bike-sharing startup Hello Inc. — formerly known as HelloBike, a survivor of China’s bike-sharing bubble  — has confidentially filed for an initial public offering (IPO) in the U.S., Bloomberg reported Wednesday (March 10), citing sources. 

Hello’s IPO coincides with a flurry of filings by technology companies looking to capitalize on escalating valuations. The firm, which is backed by Ant Group, has not yet decided on the size and value of the offering, per the report. Additional investors have included Primavera Capital Group, Fosun International Ltd. and GGV Capital. 

The Shanghai-based transportation platform, also known as Hello TransTech, was reportedly planning to raise as much as $1 billion. The listing is being handled by China International Capital Corp., Credit Suisse Group and Morgan Stanley, the sources told Bloomberg.

Founded in 2016 by Han Mei and originally named Shanghai Junzheng Network Technology, Hello is currently valued at $5 billion, according to CB Insights, per Bloomberg. The startup acquired Youon Bike in 2017. 

The platform had more than 400 million registered users across more than 400 cities in China as of October 2020, Bloomberg reported, citing the company’s website.

Larger rivals like Didi Chuxing Technology Co. and Meituan — which acquired Mobike in 2018 — have not yet turned a profit. The competitive bike-sharing space in China has extended to include electronic bikes (eBikes), which is an increasingly growing segment. As of November 2020, the country had over 6 million shared eBikes, according to BloombergNEF.

Hello originally launched its bike-sharing platform in small municipalities instead of city centers, sidestepping competition from Ofo and Mobike. 

Regulators in China have turned their attention to technology companies in the gig economy. Hello was cited by the Ministry of Transport in December 2020 for alleged safety issues and illegal car-sharing services, Bloomberg said.

For its part, Didi Chuxing raised $300 million in January to advance its autonomous driving unit, led by IDG Capital, with participation from CPE, Guotai Junan International and CCB International. In May, the company notched $500 million in funding. Backed by SoftBank, Didi started creating and testing driverless vehicles in 2016. It currently has open-road testing licenses in California, Beijing, Shanghai and Suzhou.