According to a statement from the company (in Chinese).
The increase, which Cao Cao announced on Monday, brings the company’s total funding to approximately $ 773.2 million (RMB 5 billion). The Suzhou Xiangcheng Financial Holding Group, an investment company supported by the Xiangcheng District Government of Suzhou, led the round along with the Suzhou High-Speed Rail New City Group and three other state-controlled companies.
That increase comes amid issues for Cao Cao’s largest competitor, Didi Global, the Chinese ridesharing app currently under investigation by the Chinese government for cybersecurity and has been temporarily removed from Chinese app stores, causing stocks to plummet. Didi was a passenger staple in China, so setbacks can create a vacuum that others in this space are trying to fill.
Cao Cao, currently available in 62 cities in China, saw ride volume increase 32% in July, and Didi was removed from app stores in China in the same month. Meituan, China’s e-commerce giant, also saw passenger numbers jump 24% in July, according to the Department of Transportation. However, Meituan and Amap, Alibaba’s ride-hailing and navigation unit, along with Didi, have been criticized by the Chinese government for “disrupting fair competition and harming the interests of drivers and passengers,” reports Bloomberg.
With all other players in the ride-hailing sphere fighting under government control, Cao Cao is positioned for further growth and greater market share as long as it proves fair.