Ola, the country’s largest cab service delivering company through the app, has raised $1.1 Billion in funding through China’s Internet Company Tencent and is now negotiating the final round with investors for $1 Billion.
In the current funding round, the value of Ola has been valued at about $4 Billion. Sources familiar with the company’s plan said that Ola wants to complete financing of $2 Billion by the end of this year.
Ola said that the current investor Softbank and new American financial investors have participated in financing $1.1 Billion through Tencent. However, Ola refuses to mention the names of new investors that are onboard.
It had been reported in July that Tencent is negotiating for the final round of investment in Ola.
Ola will get the strength to stay ahead of its rival in India with new funding. Along with this, it will also be able to focus on its electric vehicle project.
Uber and Ola are also working on integrating their applications with Public Transportation Services.
Ola’s executives said that the company is expected to hold its electric vehicle project in six months. An executive said, “The company has so far planned to start its electric vehicle project in major metro cities, but due to some problems related to technology and infrastructure, the project is facing difficulties, and now Ola is expected to start this project in six months.”
Sofa’s Electric Vehicle Project was promised by SoftBank’s Chief Executive Masayoshi Sun. Japan’s Softbank has the largest share in Ola. However, this American company is also negotiating to buy a big stake in Uber.
Uber’s executives said that the company is focusing on the expansion of new cities in India as well as enhancing its food delivery service, UberEats and motorcycle taxi services, UberMoto. The presence of Uber is in many big cities of the world.
However, it would be interesting to see what additional efforts Indian-based Ola will contribute in terms of a government-led target of making India green by 2030, as this will help Ola to make its hold more strong in the market.