Cab Aggregator Ola Reportedly Raises US$2Bn From SoftBank, Tencent
Bengaluru-headquartered cab aggregator Ola has reportedly raised a whopping US $2 Billion in new funding yesterday from a group of high profile investors that includes names such as Japan’s telecom and internet giant SoftBank and China’s Tencent Holdings.
According to the report, the funding round has also seen the participation of a venture capital fund, which is being jointly run by Indian industrialist Ratan Tata, U.S. institutional investors and the University of California’s investment arm.
Founded by Bhavish Aggarwal and Ankit Bhati in January 2011, Bengaluru-based cab aggregator Ola covers 102 cities in the country compared to Uber’s 28. Ola also claims to have registered 500,000 vehicles on its platform and offers a wider range of vehicle options than Uber.
According to the source close to the development, the investment has been completed and the understanding is that a sizable portion will be allotted towards boosting the electric vehicle segment.
While no official announcement regarding the funding has been made yet, we all know about SoftBank’s growing fascination with India’s booming startup market. In the recent past, the Japanese major has made several investments in the ecosystem, among which the most headline making investments include $1 billion in e-commerce platform Snapdeal and $70 million in grocery delivery firm Grofers.
Prior to this, Ola had raised $250 million in funding from SoftBank Group in April this year. SoftBank had invested the capital through SIMI Pacific Pte Ltd, an affiliate of SoftBank Internet and Media Inc.
SoftBank-backed, home-grown company Ola and San Francisco-based Uber account for a majority of this growing market. However, Ola is currently leading the market.