Popular commuting app, Ola, has so far raised $1.1 billion in funding. The funding is led by China’s Tencent Holdings and Ola’s existing investor, Japanese Soft-Bank Group. The company also claims to raise an additional $1 billion from other sources.
The money certainly comes as a boost to the startup which has had a difficult time competing with its American rival, Uber. Both companies are spending millions of dollars per day to keep up with the incentives and discounts on India’s $12 billion taxi market.
Ola has decided to allot its newly acquired funds to increasing its manpower. The firm, which is based in India, has also intends to invest in AI technology and machine learning capabilities.
In a statement, Ola’s co-founder and CEO Bhavish Aggarwal said, there were huge global changes visible in industries like transportation and mobility.
He stated, “Our ambition is to build a globally competitive and futuristic transportation system in India that will support and accelerate a nation on the move.”
Ola, is proving to be a worthy opponent to the American Uber which is currently caught in an avalanche of allegations, including sexual harassment claims and a U.S. bribery probe.
Ola on the other hand is moving up. Ola’s investors include top companies like Soft-Bank Group, Tiger Global, Sequoia India, and Accel Partners US. Soft-Bank, which is reportedly the largest of Ola’s shareholders, has invested approximately $300 million dollars this time around.
While Ola’s parent company, ANI Technologies is not a public-traded company, its revenues are massive.
Thus Ola, which began as a small initiative in India a few years ago has now grown into a full-fledged company. However, with competitors nipping at their wheels, it’s uncertain if the company’s fortunes will hold steady in the coming years.