After a delay of over six months, South Korean automobile maker Hyundai and its affiliate Kia Motor’s $311 Mn investment in Ola’s parent ANI Technology and electric taxi service Ola Electric is finally complete.
According to the Ministry of Corporate Affairs accessed by Inc42, ANI Technologies has raised $297 Mn (INR 2,137 Cr), whereas Ola Electric has $14.8 Mn (INR 106 Cr). The filing noted that Hyundai has bought 8,04,592 shares worth INR 17,09,75,80,000 ($238 Mn) in ANI Technologies and 585 shares worth INR 85,49,90,955 ($ 11.9 Mn) in Ola Electric.
Kia Motors, on the other hand, has bought 2,01,148 shares worth INR 85,49,90,955 ($ 11.9Mn) from Hyundai and 146 shares worth INR 21,33,82,358 ($2.9 Mn) from Kia Motors.
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The companies had signed the deal in March 2019. With this investment, the trio — Hyundai, Kia and Ola — will collaborate to build India specific electric vehicles (EV) and boost the Indian emobility ecosystem.
However, the sail wasn’t so smooth for the three players as getting the Competition Commission of India’s (CCIs) approval was a real task. When ANI Technologies sent the application to CCI to seek approval, the statutory body asked the company to define “competitive landscape” for EV and their use in cab-hailing services.
CCI reportedly had its reservations about the entry of big players like Hyundai and Kia Motors in the cab-hailing space. The statutory body believed that the entry of big players might be unfair to other players in the cab-hailing segment. The body was seeking a detailed report to ensure it did not hamper other players in the domain.
However, ANI did not submit the report and had to reapply in September 2019. In the second report, ANI technologies gave a clearer image of the market, EV charging infrastructure and operational leasing services. CCI approved Hyundai and Kia’s investments in Ola’s parent ANI Technologies and Ola Electic in October 2019.
With CCI’s approval, Hyundai would help Ola Electric by introducing special designed EVs in its fleet by 2021. Hyundai believes that EVs will gain more traction in the commercial side that in the personal domain, therefore the investment will help Hyundai be a part of the commercial sector as well.