Shenzhen-based online bus platform DuduBus announced on Monday that it has received RMB 100 million (USD 15.4 million) in Series B financing.
This round of financing was led by Chinese IT company Shenzhen Rainbow Fine Chemical Industry Company (TCF), followed by Guoxin Equity Investment Fund.
The new investment will be used to develop new energy buses. DuduBus will cooperate with TCF to build a leading smart travel platform.
“We will enhance the construction of our team and use new energy buses to build a smart transportation system for the public,” DuduBus’ CEO Liu Yixun said.
Founded in 2015, DuduBus offers commuting shuttles, other shuttle services, and day-long bus rentals by matching users’ travel needs with integrated offline vehicle rental resources.
The company is also exploring value-added services including offering breakfast, newspapers, on-board Wi-Fi, special seats for pregnant women, first-aid kits and even ponchos.
Unlike carpooling with cars, carpooling with buses requires investment in fixed assets, and profitability depends on highly efficient operations.
The company claims that it had one million users as of September, covering many first-tier cities including Beijing, Shanghai, Guangzhou and Hong Kong with 2,000 routes.
In June, DuduBus landed RMB 12 million in a Pre-A financing round and it landed RMB 52 million in a round of Series A financing last September.
Smart transportation with new energy vehicles is an effective means to curb pollution and relieve traffic pressure in major cities. That’s why the bus-hailing market is hot in China right now. The main players in this scene include Beijing-based Didi Bus, Pig84 and Shenzhen-based DadaBus.
Didi Bus is operated by Didi Chuxing, which landed RMB 19.6 billion in September. DadaBus received RMB 200 million in September.
(Top photo from Baidu.com.)