Ola raises $1.1 bn funding, in talks for another $1 bn
11 Oct 2017 10:53 PM IST
New Delhi: Transportation app Ola on Wednesday said it has 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 funding will help Ola bolster its position against the US-based rival Uber. 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.
The company did not disclose the valuations at which funds were raised. Existing investor SoftBank, in addition to other new US-based financial investors, has also participated in this round, Ola.
It, 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 industry sources, who did not wish to be named as the discussions are private, 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, they added. "Tencent Holdings Limited, a leading Internet company in China, will bring significant expertise to Ola as it furthers its leadership position across the mobility market in India," the firm added.
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.
Ola suffered a consolidated loss of over Rs 2,311 crore during that fiscal on account of heavy advertising and promotional expenses and other costs.
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