Japanese SoftBank Corporation is likely to invest up to Rs. 2000 crore in OLA, a funding investment that will help India’s largest taxi hailing service compete with the rival US-based Uber. The announcement expects to make in few weeks.
Ola is always a step behind the Uber, and this investment might be one of the key factors, but soon is going to change. According to the reports, Ola may raise up to USD $250-300 million (Rs. 1700 to 2000 crore) in a new round which was funding by Japanese telecom and internet major, and it expects that other investors might also participate.
In November last year, Ola has secured around $500 million in funding in the month of November 2016 which value at about $5 billion. Ola currently claims that it reach across 102 cities allowing the users to book 450,000 vehicles on board.
Ola has been aggressively on board driving partner to its platforms and has also extended its categories like luxury cars rental and the subscription services to attract premium customers. It has also launched the leasing business to increase the drivers.
SoftBank Group International President Alok Sama had said: “the company was focussed on consolidating its position in the Indian market and aggressively backing its investment here.”
The SoftBank Group International has two largest investments in India, and one is Ola, and other is e-commerce major ‘Snapdeal.’ Ola’s fundraising terms have come into existence when its rival Uber steps up its investment in the country.
Ola is currently burning a ramp of about $30million in India and which will go up to $45-50million by expanding its services to cities and products. In addition to luxury car rentals it also has an Ola Mini which is low at cost.