China's two biggest bike-share startups, Mobike and oFo, have separately raised large investments for further expansion. One of them reportedly landed at an unprecedented $500 million valuation, sources with knowledge about the matter told Bloomberg.

Like Us on Facebook

Just last week, China's Didi Chuxing recently announced its strategic "tens of millions of dollars" investment to Beijing-based oFo. Although details have not been officially divulged, oFo has reportedly raised at least $100 million from global equity companies in a round that valued the bike company at $500 million, Bloomberg reported citing insiders familiar with the deal.

On the other hand, Mobike, another Chinese bike sharing mobile app, also managed to raise more than $100 million in a new round of financing from Asian-focused Hillhouse Capital, Warburg Pincus and other investors including Sequoia Capital and Qiming Venture Partners.

The Shanghai-based company's latest series C of financing came just over a month after it raised more than $10 million in a series B financing led by Panda Capital, joined by Joy Capital and Sinovation Ventures in August, according to China Money Network.

Both Hillhouse and Warburg spokespersons refused to give comment when asked by China Money Network about the report.

South China Morning Post noted that the fundraisings were "unusually" large for startups that are still on their development stages. However, the investments also emphasize investors' increasing interest of going beyond the automobile market, which is currently dominated by Didi.

While both offer bike rental services, Mobike usually caters white-collar office workers across big Chinese cities like Beijing, Guangzhou, and Shanghai. The company, which was established in December 2013, reportedly has more than 200,000 registered users. It manufactures its own bike at about 3,000 yuan ($449) to 5,000 yuan ($748) to cut down maintenance and repair expenses.

On the other hand, oFo serves mostly universities as it started as a student project in 2014 in China's Peking University. It now operates in 20 cities and has about 1.5 million users. It sources its bikes from recycled or donated ones with an average of 270 yuan ($40) per bike.

TagsDidi, Didi Chuxing, OFO, mobike, bikes, bike sharing app