Economy

Uber's India Rival Raises $1.1 Billion From Tencent, SoftBank

Uber's India Rival Raises $1.1 Billion From Tencent, SoftBank”

And with Uber's new CEO Dara Khosrowshahi focused on portraying the firm as a reformed company that is turning a page on concerns including sexual harassment claims and a USA bribery probe, Ola has an opportunity to further extend its lead in India.

India's largest ride-hailing service Ola said on Wednesday it has raised $1.1 billion (roughly Rs. 7,184 crores) in its latest round of funding from Chinese conglomerate Tencent, as well existing investors including Japan's SoftBank, as it ramps up its fight against San Francisco-headquartered Uber. Ola, which is fighting Uber in a highly competitive India market, said a few US-based financial investors had also joined the new fund raise.

"Ola's unique local offerings are tailored to India's burgeoning transportation needs". Tencent, for example, has invested in similar start-ups to Ola such as Indonesian ride-hailing app Go-Jek.

According to the reports that surfaced last week, among the other backers in Ola's financing round was a VC fund jointly run by the University of California's investment arm, Ratan Tata and a number of US-based institutional investors. The transportation and mobility industries are seeing huge changes globally. Bhavish Aggarwal, chief executive officer and a founder of Ola said in a press statement. These areas include artificial intelligence and machine learning capabilities. The additional Dollars 1 billion funding is also likely to be closed in the next few weeks, they added. "We look forward to helping Ola further develop India's transportation solutions".

While ANI Technologies is not a publicly-traded company, according to regulatory documents, its revenues registered a stellar growth at ₹ 758.23 crore during 2015-16 compared to ₹ 103.77 crore in the previous fiscal.

However, Ola suffered a consolidated loss of over Rs 2,311 crore - about Rs 6 crore a day - during that fiscal on account of heavy advertising and promotional expenses and other costs.

The massive funding comes just months after home-grown e-commerce major Flipkart raised $1.4 billion, the single largest funding round by any Indian internet firm. Earlier this year, Uber exited direct operations in Russian Federation. He further added, "Our new partners share our passion for building the future of transportation in India together and we look forward to learn and benefit from their global perspectives and ecosystems".



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