The funds sought to counter competitive pressures from rival Uber Technologies is expected to give the six-year-old Indian company enough funds to operate for at least another year and half. Ola is likely to utilise the additional capital to accelerate driver recruitment spends, supporting vehicle leasing, and expanding its geographic presence.
The roughly USD 10-billion ride hailing market in India is readying for its next phase of expansion and Uber which recently exited China, a serious drain on its resources, now has enough funds to make the best of the rapid growth in India, experts on subject say.
Ola, which has other investors like DST Global, Accel Partners and Sequoia Capital, had also recently allowed customers to book Ola rides offline, in a bid to push sales to customers who have so far been unable to book due to internet connectivity issues or expensive data plans.
Source: moneycontrol