Chinese bicycle sharing startup Mobike is seeking US$20 million in financing for its European operations, TechCrunch reported, citing people with knowledge of the matter.

A senior manager of Mobike’s European unit is said to be in talks with outside investors as part of the plan to spin off the European operations, it said. Mobike will retain a 49% stake after the deal goes down.

Mobike currently has operations in the United Kingdom, France, Germany, Italy, Spain and the Netherlands. The source was quoted as saying that outside investment and the spinoff would then value its European operations at about US$80 million to US$100 million.

The deal is expected to be done by the end of June, and Paul Zhu, European regional general manager for Mobike, will become chief executive of the new EU Mobike.

Mobike has been retreating from its global operations. It recently shuttered operations in Newcastle in the UK and in Padua, Italy.