Ola, India’s most popular app for ridesharing, today, announced its latest round of funding of US$1.1 billion led by Tencent Holdings Limited (0700.HK). Ola’s existing investor SoftBank, in addition to other new US-based financial investors have also participated in this round. Tencent Holdings Limited, a leading Internet company in China, will bring significant expertise to Ola as it furthers its leadership position across the mobility market in India. Ola is also in advanced talks with other investors to close an additional US$1 billion as part of the current financing round, concluding a total raise of over US$2 billion.
Ola is currently present in 110 cities across the country with over 14 unique categories to serve the various transportation use cases for India’s 1.2 billion people. These include India-centric categories like auto-rickshaws and bikes, as well as vehicles equipped with the world’s only connected car platform for ridesharing, Ola Play. Ola has also pioneered sustainable transportation solutions in the interest of solving for long term problems in the country around congestion and pollution with solutions like Ola Share and Multimodal Electric Vehicles on its platform.
With its latest round of funding, Ola will be making strategic investments in supply, technology, and cutting edge innovations to build for the country’s unique transportation needs. The company will make significant technology investments into Artificial Intelligence and Machine Learning capabilities to solve for India’s unique mobility problems. By doubling down on penetration, Ola intends to go deeper into the Indian market to serve the vast majority of Indians who are looking for affordable and reliable commute and transportation.
Bhavish Aggarwal, Co-Founder and CEO of Ola, said, “We are thrilled to have Tencent Holdings join us as new partners in our mission to build mobility for a billion Indians. The transportation and mobility industries are seeing huge changes globally. Our ambition is to build a globally competitive and futuristic transportation system in India that will support and accelerate a nation on the move!” 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.”
Martin Lau, President of Tencent Holdings, said, “Ola’s unique local offerings are tailored to India’s burgeoning transportation needs. The strategic partnership with Ola makes it possible for Tencent to be part of the fast-growing ride-hailing space in the country. We look forward to helping Ola further develop India’s transportation solutions.”