The Startup Observer keenly observes the startup ecosystem to choose and list one company, person, or an entity to feature in this space every month. That entity should have created a major impact in the industry. And, this month, it’s none other than your daily commute partner Ola.
This month, India’s largest app-based ride hailing platform Ola (ANI Technologies) has raised $1.1 billion in fresh funding from China’s Tencent Holdings and existing investor SoftBank group of Japan. Ola also said it was in advanced stages to raise another $1 billion from existing and new investors, taking the total funding to $2 billion.
The funding comes as a great sigh of relief to Ola which has been trying to raise fresh capital since June 2016. The fresh capital gives Ola the required ammunition to fight its global and larger rival Uber. Ola is still ahead of Uber in India in terms of market share but the latter is fast catching up.
Ola said it will deploy the fresh funds to improve the supply of drivers through greater focus on the leasing business and increasing the number of drivers attached to this platform. Ola also plans to invest in technologies mainly in data sciences and electric vehicle infrastructure.