After raising an undisclosed amount from Ratan Tata in July, Mumbai-based cab service provider Ola Cabs has now raised $225 million in a fresh round round of funding. The new funding is led by existing investor Falcon Edge Capital with participation from New York-based hedge fund and its existing investors Tiger Global Management LLC and Softbank Corp. and six other investors, as per documents filed by the company with the Registrar of Companies (RoC). The firm has raised a total funding of more than $900 million till now.
According to the RoC filling, Falcon Edge has invested around $78 million, and Tiger Global and Soft Bank have pumped in $60 million and $58 million, respectively. Other existing investors, Steadview Capital, the Hong Kong-based hedge fund, Pittsburgh based technology firm ABG Capital and Mauritius-registered FII LTR Focus Fund have contributed $3.1 million, $2.7 million and $1.8 million respectively. New investors in the round include JS Capital (M) Ltd and Parkwood Bespin, both Mauritius-registered entities, and Singapore-based high net-worth individual Daniel E. Neary, and the three together contributed $20 million.
In April 2015, OlaCabs had raised $315M in funding led by DST Global. At that time, the company was valued at around $2.5 billion. In March 2015, it had acquired its rival TaxiForSure with an aim of becoming the leader in cab aggregator space.
Apart from this, Ola will invest over $750 million in the coming year to expand its newly formed cab leasing business, that will enable flexibility for drivers to lease a car for a minimal initial deposit and monthly lease payments with an option to own the vehicle after a period of 3 years.
Up to $750 million of capital will be infused towards this programme in the coming year, and the company will raise funds independently for this subsidiary in the time to come. Over 1000 vehicles across Bangalore, Chennai, Hyderabad and three other cities are already on road as part of this pilot. By December 2015, at least 10,000 cars are expected to be on-road under the leasing model.
The company has also appointed Rahul Maroli from LeasePlan India as VP- Strategic Supply Initiatives to head the leasing business. Bhavish Aggarwal, Co-founder & CEO, Ola said, “We believe that this first of its kind leasing program brings a unique benefit to driver partners to turn entrepreneurs. Rahul’s rich experience shall help us scale this business rapidly and in making this first of its kind program, an industry benchmark.”