Didi’s investment in Bangalore-headquartered Ola comes close on the heels of it picking stakes in San Francisco-based Lyft and Malaysia’s GrabTaxi, signalling a global alliance against San Francisco-based Uber, currently the world’s most valuable start-up at $51 billion.
Bangalore-headquartered Ola, formerly Olacabs, recently raised around $225 million (Rs.1,478 crore) as part of a new funding round, led by existing investor Falcon Edge Capital, and other existing investors including Tiger Global Management LLC and Softbank Corp.
The fresh tranche took the total capital raised by ANI Technologies Pvt. Ltd, the Mumbai-based company that owns Ola, to a little over $900 million.
Ola is finalising the second tranche of $200 million of its $500 million financing round led by Singapore’s sovereign wealth fund GIC, Didi Kuaidi, and Baillie Gifford, a Scottish investment firm which is a shareholder in Flipkart, valuing the Indian cab-hailing app at $5 billion, the report said.
Over the past few months, Ola has also unveiled a slew of measures to take on Uber. After cabs and autorickshaws, the firm is on the verge of rolling out shuttle bus services by on-boarding chartered and tourist buses on its platform. In addition, it is exploring ancillary revenue channels. It entered the food delivery business with Ola Café in March and followed with grocery delivery app Ola Store in June. It is also expanding its mobile wallet, Ola Money, by offering it to other e-commerce platforms such as OYO Rooms, Lenskart and Saavn.
Uber claims to be growing 40% month-on-month in India and expects to clock more than one million daily rides by the end of the current fiscal. The company had also announced that it would invest $1 billion in India over the next 6-9 months. Also, last month Tata Opportunities Fund invested almost $100 million in Uber, to help in its India expansion.
Uber Technologies Inc’s China arm is also faring strong and had closed its $1 billion fundraising round recently in order give a tough fight to its competitor Didi Kuaidi.