Indian ride-hailing firm Ola raises US$2bn from investors led by SoftBank, Tencent
Deal will help the start-up build up vehicles and drivers to compete against Uber in India’s US$10bn ride-hailing market
A group of investors led by Japanese conglomerate SoftBank Group Corp and Chinese internet giant Tencent Holdings has invested US$2 billion in the latest round of funding for ride-hailing services provider Ola, the fiercest rival of Uber Technologies in India, according to a person familiar with the matter.
Other backers in the ride-hailing start-up’s latest financing initiative included a venture capital fund jointly run by Indian industrialist Ratan Tata and the University of California’s investment arm, as well as several US institutional investors, people familiar with the deal said.
Ola’s valuation after the financing was not immediately clear.
The deal will help Ola shore up its lead in India and build its supply of vehicles and drivers, as well as technology to help it win against Uber. The funding round is not finished yet and the amount could change, the person added.
Uber and Ola, whose parent is ANI Technologies, are competing in one of the world’s most attractive ride-hailing arenas.
Ola currently holds the upper hand in the US$10 billion Indian market, but Uber has been increasing the pressure through driver incentives and promotions targeted at its rival’s existing markets.