Ola is in discussion to raise nearly $1 billion


Bengaluru: ANI Technologies, the company that owns India’s largest taxi aggregator, Ola, is in talks to raise nearly $1 billion (Rs 6,700 crore) in fresh backing to compete with global competitor Uber, the only market that remains open globally. Ola is expected to close the round before the end of July. Existing investors Soft Bank, Sequoia Capital and DST Global are likely to participate in the round. According to reports in sections of the media, two new US investors are also expected to participate in the funding round. The round of funding is expected to close by July-end.

Ola’s global partner and investor Didi Kuaidi will also take part in the round, potentially bringing India into the competition map between Google and Apple. In May, Apple invested $1 billion in Didi, which dominates the Chinese market. Ola did not respond to a mail seeking comments sent on June 8. The straggler in the US market, are part of a global alliance that allows users to use their home app in other countries.

Indonesian taxi aggregator Grabtaxi and US-based Lyft that lags Uber by miles in the US market. Uber currently dominates the app-based taxi aggregator space in the US.Ola’s attempts to lift funds could be seen as an attempt to build up enough funds to fend off Uber which plans to spend a large piece $3.5 billion, it had recently raised from Saudi Arabia’s Public Investment Fund in India.