App-based ridesharing platform Ola on 11 October announced its latest round of funding of USD 1.1 billion led by Tencent Holdings Limited (0700.HK), along with Ola's existing investor SoftBank, and new US-based financial investors.
Tencent Holdings Limited, an Internet company in China, will bring significant expertise to Ola as it furthers its leadership position across the mobility market in India.
However, the taxi aggregator has been on advanced talks with other investors to close an additional USD one billion as part of the current financing round, concluding a total raise of over USD two billion.
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 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.
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.
It 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.
"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. 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," said Bhavish Aggarwal, co-founder and CEO of Ola.
"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," added Martin Lau, president of Tencent Holdings.