Last week, reports surfacing online claimed that Ola was in talks to raise as much as $400 million in the latest round of funding. Today, the company has announced that it has successfully raised Rs 2,500 crore in Series E funding with an aim to expand its services in the country. Also Read - FIR filed against Twitter India again, now over child pornography contentAlso Read - Mi Notebook Pro X to be Xiaomi's most expensive laptop yet, launch tomorrow
Ola s Series E round was led by DST Global, and also included the likes of SoftBank, Tiger Global, Steadview Capital and Accel. It also included new investors like GIC, and Falcon Edge Capital. This includes the $314 million (approximately Rs 1,954 crores) it was reported to have raised last week. The company’s Registrar of Companies (RoC) filings suggested that DST Global had invested $206 million in the company while Tiger Global had invested $40.65 million, Steadview Capital $10.5 million and Accel about $5 million. Also Read - Ola to offer free oxygen concentrators to the needy
The latest round of funding takes Ola s investments to over $600 million, after having raised $210 courtesy of Japan s Softbank last year. While the company hasn t mentioned it, the latest round of funding will have taken Ola s valuation to over $1 billion.
Our vision is that people shouldn t find the need to own a car. And we have been able to make this possible for millions of customers in the past four years and creating over a hundred thousand driver entrepreneurs on the platform, Co-founder and CEO Bhavish Aggarwal said. With increasing smartphone penetration and immense growth in smaller cities and towns, we will be able to drive the benefits of this on-demand platform deeper into the lives of our customers and partners.
With the funding, Ola plans on expanding its services in India. The company has targeted tier 2 and tier 3 cities in the country, and plans on expanding to 200 cities by the end of this year.
Ola has been on a growth path recently, and is taking the competition to Uber. In addition to having acquired rival TaxiForSure last month for $200 million last month, the company has expanded its services as well. Recently, it brought kaali-peeli taxis and auto rickshaws onto its platform to give its customers cheaper options to choose from. This was something Uber quickly followed by announcing UberAUTO, a cash-only auto rickshaw service in Delhi. Ola also recently launched Ola Cafe, a 20 minute food delivery service in four cities in India.