As per the report of bloomberg,Ola seeks to counter Uber Technologies Inc in India market.
Ola, is in talks to raise about $600 million and may close the deal by year end, according to a person familiar with the matter.
The funds are coming from new and existing investors and would give six-year old Ola enough capital for at least 18 months, said the person, asking not to be named because the talks are private. Negotiations are ongoing and the amount raised or timing may still change.
The funds are coming from new and existing investors and would give six-year-old Ola enough capital for at least 18 months, said the person, asking not to be named because the talks are private. Negotiations are ongoing and the amount raised or timing may still change. SoftBank Group Corp., a current investor, plans to participate and may lead the funding round, the person said.
Ola says its mission is to build mobility for a billion Indians. The company currently covers 102 cities in the country compared with Uber’s 28, and has 450,000 vehicles. The Bangalore-based startup, founded in 2011, also offers a wider range of vehicle options than its San Francisco competitor.
Recently, Ola said it would collaborate with the government to train and recruit 5 million drivers in the next five years. Both companies have tied up with automakers like BMW, Tata Motors and Maruti Suzuki to lease cars with attractive and affordable financing options for drivers.
Ola’s founder and Chief Executive Officer Bhavish Aggarwal said in an interview this summer that Ola, with a million rides daily, is ahead of its competitor. Ola has unveiled several new features to try and one-up its rival, such as allowing customers to book Ola rides offline, a boon in a country with poor Wi-Fi connectivity and expensive data plans, and its Just in Time feature that sends alerts to users when a cab is available or peak pricing ends.
Aggarwal did not respond to an e-mail about the upcoming funding round. A spokeswoman for SoftBank responded saying they are “unable to comment on speculation on fund-raising efforts.”