Ola enters into billion league, raises $1.1 bn and looking for another $1 bn funding

Without disclosing when and at what valuation, cab aggregator Ola said that it has raised $1.1 billion in funding and is in advanced talks to close an additional $1 billion

Must Read

How to choose an effective DDoS mitigation plan

There are several flavours from which to choose when selecting an effective DDoS mitigation strategy. Most enterprises opt for one of the protection flavours (always-on or on-demand)

How tech bolster security of online gaming platforms

The rise of online gaming and is evident throughout the world’s financial capitals with the UK, US, and a few other European nations at the forefront

Explained: The evolving nature of cybersecurity threats

Concerns such as hacking and the presence of computer viruses have existed for decades in one form or another. As technology evolved over the years, so did the cybersecurity  threats themselves.

Without disclosing when and at what valuation, cab aggregator in a statement said that it has entered into billion league and raised $1.1 billion in funding led by Tencent Holdings and is in advanced talks to close an additional $1 billion to conclude a total mop-up of over $2 billion. The raised funding will be used to bolster its position against the US-based rival . The two are locked in an intense battle for leadership in the Indian market and have pumped in millions of dollars in driver incentives and discounted rides for customers.

Existing investor SoftBank, in addition to other new US-based financial investors, has also participated in this round, however, did not disclose the time period when the funding was raised or the timeline for the closure of the total $2 billion round. According to reports, the $1.1 billion came in over the last 4-6 months in tranches. The additional $1 billion funding is also likely to be closed in the next few weeks.

Ola said it will make strategic investments in supply, technology and innovations “to build for the country’s unique transportation needs”. It has operations across 110 Indian cities. The cab aggregator also plans to make significant technology investments into artificial intelligence and machine learning capabilities.

ANI Technologies, which operates Ola, counts among its investors names like SoftBank Group, Tiger Global, Sequoia India and Accel Partners US. While ANI Technologies is not a publicly-traded company, according to regulatory documents, its revenues registered a stellar growth at Rs 758.23 crore during 2015-16 compared to Rs 103.77 crore in the previous fiscal.

However, Ola suffered a consolidated loss of over Rs 2,311 crore — about Rs 6 crore a day — during that fiscal on account of heavy advertising and promotional expenses and other costs. “The transportation and mobility industries are seeing huge changes globally. Our ambition is to build a globally competitive and futuristic transportation system in India that will support and accelerate a nation on the move,” Ola co- founder and CEO Bhavish Aggarwal said in the statement.

Martin Lau, President of Tencent Holdings, said the strategic partnership with Ola “makes it possible for Tencent to be part of the fast-growing ride-hailing space in the country”. Tencent is also aggressively investing in the country to cash in on the burgeoning Indian market. Earlier this year, Tencent was part of Flipkart’s $1.4 billion fund raising that also saw participation from Microsoft and eBay.

Subscribe to receive the day's headlines from Tech Observer straight in your inbox

Leave a Reply

*The moderation of comments is automated and not cleared manually by techobserver.in. Embedding of any link and use of abusive or unparliamentary language are prohibited.
- Advertisement -

Latest in TECH

Sapience Analytics signs distribution agreement with Redington

Sapience Analytics and Redington said that they have entered into a distribution agreement where latter will resell the Sapience Vue solution through its network of over 30,000 channel partners, system integrators, and value-added resellers countrywide.
- Advertisement -SAP Hana

Related Articles