(Yicai Global) Dec. 15 -- A leading investor in one of China's two main bike-sharing startups said a merger is likely if it is one of equals, confirming recent talk of a possible combination.

Beijing Mobike Technology Co. and Beijing Bikelock Technology Co., better known as Ofo, are open to a union provided neither party has a controlling stake in the new company, Liu Erhai told tech news platform 36Kr on Dec. 13. Liu's venture capital firm Joy Capital LLP is Mobike's top investor after Tencent Holdings Ltd.

Earlier this week, two Ofo backers said they'd welcome a merger with Mobike as China's bike-sharing market becomes ever-more saturated and cut-throat. Liu's are the first public comments from a Mobike backer on a union.

The rivals have denied speculation they may combine, but many investors believe it is just a matter of time. Mobike and Ofo have been the darlings of venture capitalists as their ubiquitous bicycles spread through China's cities, putting millions of units back on the streets and clogging up sidewalks for pedestrians. But boom has turned to bust for some in the 'Uber for bikes' business. Bluegogo, the country's number three player, went bankrupt last month.

"I believe they're going to merge," said David Zhang, founder and managing partner of Matrix Partners China and an investor in Ofo, at a session of the Wise 2017 investor summit in Beijing on Dec. 12. "In fact, I hope they merge." Xu Xiaoping, founder of ZhenFund, echoed his opinion.