Chinese bike-sharing startup Ofo, backed by Alibaba Group Holding Ltd, has "immense" cash flow problems and has considered applying for bankruptcy, the Financial Times reported on Wednesday.
Cash flow problems for the company have become acute, the FT reported, citing Ofo founder Dai Wei's letter to employees.
"I've thought countless times ... of even dissolving the company and applying for bankruptcy," the FT reported, quoting the letter.
"For the whole of this year we've borne immense cash flow pressure. Returning deposits to users, paying debts to suppliers, in order to keep the company running we have to turn every renminbi into three."