BEIJING (Reuters) - FAW Car Co Ltd said on Sunday it was taking a 10 percent stake in Chinese bicycle-sharing startup Mobike's new car-sharing unit Mobike Chuxing Technology Co. Mobike Chuxing was set up in December with registered capital of 20 million yuan ($3 million).
With the strategic investment, FAW will provide electric cars for the project.
FAW, in a statement, said it had signed a deal to buy the stake but did not disclose financial details. The investment will not have a significant impact on FAW's earnings. Mobike, whose backers include Tencent and Sequoia, has 100 million users and supports roughly 25 million rides a day.
Its top competitor, ofo, raised $450 million in May last year from a range of investors, including Chinese ride-sharing service Didi Chuxing.
($1 = 6.4875 Chinese yuan renminbi)
(Reporting by Josephine Mason and Meng Meng; Editing by Susan Fenton)
Disclaimer: No Business Standard Journalist was involved in creation of this content