Photography: Shi Xiaobing
Ali's steps into the ofo are still ambiguous, but his ambition cannot be doubted. In the cycling market, Ali and Tencent began facing confrontation.
Wen | "Chinese Entrepreneur" reporter Jiao Lisha, editor | Yan Wenting
Ali's right to speak in ofo once again strengthened.
Earlier this morning, ofo announced the completion of E2-1 round of financing of US$866 million. Leaded by Alibaba, Fengfeng Group, Tianjian Joint Venture, Ant Financial and Junli Capital jointly followed the investment.
A person close to ofo revealed that the amount of E2 financing that OFO received should be more than that. Since some funds are not yet available, the E2-1 round of financing was announced first, and E2-2 will be announced soon. This message was not officially confirmed by ofo.
This is a parallel financing of equity and debt. Such a financing structure is rare in Internet companies.
An insider of OFO revealed to “Chinese Entrepreneur” that this round of financing included the previous ofo's use of chattel mortgage to exchange Ali’s 1.77 billion loan. He did not disclose further the specific proportion of equity and debt financing.
Taking into account the current status of OFO and Ali's attitude, and both parties have not announced the latest valuation of OFO, it is likely that the proportion of claims is greater than equity.
In Internet companies, equity financing is more common. The biggest difference between debt financing and equity financing is that the former has a fixed term and usually has a short time. The company must pay interest and must repay the principal when it expires. Once the company has a huge risk, it pays the debt first, and then still shares.
Under normal circumstances, when investors have doubts about the unknown risks of the company, they will require multiple measures to protect their own rights and interests. Prior to the financing of an Affiliated Affiliate, the investor asked Ali to provide a guarantee, and at the same time promised a certain proportion of return on investment, and eventually finalize the financing.
From the details of the financing after the release, OFO will soon make intensive commercial attempts, and the capital market is eager to see a healthy profit model.
It is worth noting that, in addition to Ali and Ant's gold suits, the background information of the three institutions of the Forefront Group, Tianjian Joint Venture Capital and Junli Capital is difficult to capture. "Chinese Entrepreneur" contacted multiple investors and made inquiries through related software, and did not obtain detailed information from the three agencies. Including the relationship between the three investment institutions and Ali, it is not yet known.
Although Ali's entry into the ofo is still awkward, his ambition cannot be doubted. In the cycling market, Ali and Tencent began facing confrontation.
Ali's further investment in ofo is not the result of a series of games.
Previously, an anonymous person in ants gold clothes once told "Chinese entrepreneurs" that "for Ali, this money is still affordable." The key to Ali's accession is, of course, ofo wants to pull Ali to come in, but he can only agree to it. Then he has to talk about the conditions. He has to talk about what kind of price he will receive and what he will cover in the future. ”
Ali has his own logic for bicycles. They think that the biggest problems in this industry are: 1. Unlimited and uncontrolled expansion; Second, large deposits generate huge risks and hidden dangers.
According to the above sources, to obtain Ali’s funds, “Odoo” must be exempted from deposits, plan and control adjustments to current operating plans, and change the extensive model. ”
Just this afternoon, Ali’s other bicycle force, Hellobike, announced the implementation of a deposit-free policy across the country. Ali’s ambition for cycling is gradually becoming a reality.
In early December 2017, Zhu Xiaohu, the early investor of OFO, signed the exit agreement. With a valuation of US$3 billion, Zhu Xiaohu sold the shares of OFO to Alibaba and Didi. Ali took most of the quota, including Zhu Xiaohu’s board seat and one-vote veto, and Didi only took a small amount. After taking over Zhu Xiaohu’s shares, Ali’s shareholding in ofo is around 10%. The changes brought about by the new financing are unknown.
Prior to this, "Dai Wei's plan was to give Ali an amount of 200 million U.S. dollars, and the rest was to Softbank and Didi. "According to one ofo's investors, Ali's $200 million has already arrived last year, but after the deterioration of ofo and Didi, Didi and Softbank's financing is likely to die.
He also revealed that Ali’s stake in ofo was not high. At that time, Ali hoped to eat all the quotas. At the same time, he asked to take away Davie’s one-vote veto and dilute Didi’s shares.
An anonymous source said that at the time, ofo hoped to introduce Ali's financing to take away the control power of Didi and turn Didi into a pure financial investor, with one board seat reserved. The insider's argument is that, for Ali investment ofo, Didi Yue sees it, and will be consistent with Ali in action.
According to investors, after the Jinsha River exited the ofo, on the OFO board of directors, the management team had five seats (Dai Wei exercised all the voting rights), two seats, one seat for Ali, and one seat for Jingwei. Among them, Dai Wei, Didi, Ali, Jingwei have a veto. This round of Ali's further investment, the pattern may have changed.
However, the situation is not optimistic. “Drop control ofo while also doing his own bike, he will not opt out. "Anonymous sources said that Tencent is the major shareholder of Didi, and Ali's control of ofo through investment is also a result he does not want to see."
This is a huge battle of traffic, behind the game between Tencent Ali.
AT frontal confrontation
Many investors once expressed to “Chinese Entrepreneurs” that it was difficult for the merger of Mobike and ofo companies to a large extent that Tencent’s and Ali’s strategic appeals were not the same.
“A business has little strategic value for both A and T, and the strategic value of (cycling) is very large. "An investor said.
Zhu Xiaohu once counted an account. “The bus market in the shared bicycle market is the subject of a bus. In China, the number of bus trips per day is 350 million. Now, the daily riding data of the two shared bicycles is 50 million times. Three years later, it is very likely that a shared bicycle will ride at least 100 million to 200 million times a day. Globally, no trading platform can have such trading volume every day. ”
Tencent took the lead in Mobike in October 2016 and is now the largest institutional shareholder of Mobba; March 2017 Ant Financial led the Yongan Bank, strategic investment ofo, July Alibaba investment ofo, October Yongan line low carbon and Kazakhstan With the merger of Luo bicycles, Ant Financial invested and became the largest shareholder of Harlow.
It is a matter of fact that the current shareholder structure has emerged. In May 2016, after OFO launched the B round of financing, Dai Wei had contact with Tencent but missed a weekend. "Tencent is going to open an ordinary meeting on Monday to talk about investment with ofo, but on the evening of the previous Thursday, Xiao Min (the partner of Jingwei China) and Dawei's office in Jingwei China signed the agreement in advance." Zhu Xiaohu said that if another weekend is over, the whole story will change.
“At that time, Xiao Min chatted with each other and the idea was very consistent. "Dee Wei recalled that financing with Ali was also very quick and it took only two weeks. According to Zhu Xiaohu, Tencent’s support for Mobai is very strong and Ali must also invest in one.
Mob investors said that there are two reasons why Ali wants to invest in ofo. First, Alipay's offline penetration rate is not as good as WeChat. To improve the frequency of use, it is necessary to enrich high-frequency usage scenarios. Users use the Alipay scan code to ride, is a great scene to supplement. Followed by sesame credit, WeChat is also establishing a credit system.
The offline payment scenario and the establishment of a credit system are the common aspirations of Ali and Tencent. There is also investor analysis. For Tencent, small programs are also a great strategic value.
In the second half of 2017, Ma Yun and Ma Huateng had publicly shouted. During the Wuzhen Internet Conference, Ma Yun told the media that "We must consider any contribution to the industry in our mergers and acquisitions, and we must not do anything to monopolize or collect money early." ”
After the Haruo bicycle won the investment of Ant Financial Services, Ma Huateng left a message in the circle of friends, and was used as a promotion tool for payment. The other poor shareholders were locked up. ”
This view has been recognized by some investors. Some investors worry that Ali will use the Haro bicycle as a fort, just like he is hungry now. If ofo took Ali's financing, Dai Wei is likely to be the next Zhang Xuhao (hungry CEO).
For Ali, he did not want to, and would not let, merge with Tencent's control of the right to speak again. However, for the investment population, "Dai Wei is a man with a heart that lives in a tiger, gentle appearance," will be willing to give in?