Geely's ride-hailing arm Cao Cao raises 3.8 billion yuan

Chinese ride-hailing service provider Cao Cao Mobility, owned by Geely Technology Group, announced on Monday that it raised 3.8 billion yuan ($589 million) in its series B financing round from investors including Suzhou Xiangcheng Financial Holding Group.

This marked the first Chinese equity investment in the ride-hailing sector this year and the largest sum of investment in the sector from Chinese investors since 2020.

Cao Cao CEO Gong Xin said the funds will be used to advance research and development into platforms, expand its business, improve its service quality, and increase drivers' safety.

Established in 2015, the ride-hailing service provider raised 1 billion yuan in its series A financing round in 2018.

Cao Cao unveiled its latest strategy at the event on Monday that focuses on new customized models, new energy technologies, and a new ecosystem.

"Cao Cao Mobility plans to utilize the strengths and resources of Geely's mobility ecology and Suzhou's strong industrial ecology to advance the development of an integrated mobility ecosystem," said the company in a statement.

Li Shufu, chairman of Geely Holding Group that owns Geely Technology Group, said a large-scale mobility ecosystem is one of the key measures in the company's transformation to becoming a mobility technology service provider.

"Through the use of the world's most advanced internet of vehicles, autonomous driving, and new energy technologies, we will revolutionize the field of shared mobility.

"With the development of Cao Cao as a world-class mobility technology platform, we will be able to provide more users with a better, more comprehensive, intelligent mobility experience,” said Li.

Cao Cao's service is now available in 62 cities across the country, with its total number of registered users exceeding 60 million. Its monthly active users total 5.677 million, up 140 percent year-on-year.