China’s Didi Kuaidi may back India’s Ola to take on its biggest rival Uber

Visual sourced from the Olacabs website

China’s largest taxi-aggregator app Didi Kuaidi, which is backed by e-commerce giant Alibaba, may invest in homegrown Ola to take on its cash-rich rival Uber, as per a report in The Times of India.

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.

Also Read: Ola Cabs to invest $23m, add 40,000 vehicles to its platform in India’s Andhra Pradesh

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India’s Ola raises $225m from Falcon Edge Capital, existing investors

For carmakers, taxi-hailing apps Ola, Uber pose fresh challenge

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Uber seen reaching $10.8b in bookings in 2015: Fundraising Presentation

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SoftBank invests $250m in Uber-rival GrabTaxi

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.