Bengaluru-headquartered cab aggregator Ola has reportedly raised $2 Bn in a fresh funding round led by the investment arm of Chinese Internet giant, Tencent. Existing investor, Softbank Group Corp, also participated in the round.
As per a report by ET, Tencent has poured nearly $400 Mn into the ride hailing startup, taking the latter’s valuation to $3.8 Bn. According to a source close to the development, “The investment has been completed and the understanding is that a sizeable portion will be allotted towards boosting the electric vehicle segment.”
Other backers in Ola’s latest financing round include a VC fund jointly run by the University of California’s investment arm, Ratan Tata and a number of US-based institutional investors.
According to some sources, the funding round is not yet complete and the amount could change in the coming weeks. As per another source, however, the deal with Tencent has been finalised and is currently awaiting the approval of CCI.
Intended to help Ola thwart competition from its biggest rival Uber, the $2 Bn funding will reportedly enable the ride hailing company to expand its fleet of vehicles and bolster its core technology platform. A portion of the funding will also be spent on onboarding drivers, especially in tier II cities across the country.
An email query sent to Ola did not elicit a response till the time of publication.