San Francisco based taxi hailing app Uber has raised $75-100 million from private equity firm Tata Opportunities Fund. In June, the company announced that it has raised $1 billion from Chinese investment management firm Hillhouse Capital Group to make investments in India over 9 months, targeting 1 million rides a day. It has secured $5 billion till date, and the company is now valued at about $51 billion.
“Right now, we’re particularly focused on building a great service for hundreds of millions of Indians — and Tata’s leadership and experience will be crucial in helping us meet this important goal,” Uber CEO Travis Kalanick said.
In India, Uber has presence in 18 cities and has been posting 40% growth on a month-on-month basis. The Tata Capital-backed fund marks its first deal outside India. The fund has a corpus of $600 million, out of which it has already invested around $400 million across six deals.
Softbank-backed Ola is Uber’s direct competitor in India which is valued at around $4.5 billion. Till now, Ola has raised around $700 million and is in advanced talks to raise another $500 million. It also acquired its competitor TaxiForSure for $200 mn in a cash and equity deal in March this year.
Earlier last month, Ratan Tata, chairman emeritus of Tata Group holding company Tata Sons Ltd, made a personal investment of undisclosed amount in Ola. Now, this investment from Tata fund in Uber might create a conflict among these two companies.