Cab aggregator Ola (ANI Technologies) has raised US $36 million (Rs 231 crore) from New York’s Tekne Capital Management, according to documents filed with the Registrar of Companies (RoC). This was first reported by VCCircle. When queried for a confirmation, an Ola spokesperson declined to comment.
The publication reports that Delaware-based Tekne Private Ventures III, LP has invested Rs 167.15 crore while Cayman Islands-based Tekne Private Ventures 1 Master has invested the rest.
Note that in June this year, Ola had raised $50 million from Tekne and was in talks with several investors, including Coatue Management LLC, to raise more funds.
- Before that in May, it raised Rs 670 crore from Ratan Tata’s venture fund RNT Capital Advisers LLP and US hedge fund Falcon Edge Capital LP. And, $250 million from Japan’s SoftBank Group Corp, in April.
- In November 2015, Ola Cabs raised Series F funding worth $500 million from Baillie Gifford, Falcon Edge Capital, Tiger Global, SoftBank Group, DST Global and China’s Didi Kuaidi.
According to Livemint, about 1.23 lakh shares were allotted to US-based Tekne Private Ventures III LP for Rs 167.15 crore and 47,548 shares worth Rs 64.28 crore were issued to Tekne Private Ventures I Master. With this round, Ola has so far raised $1.75B, in 12 rounds from 24 investors.
Ola Vs Uber
The fresh round of investment will prepare Ola to fight the battle against Uber in India. In May this year, Uber infused Rs 51.64 crore into its India operations
Ola entered the market in early 2011, and had a market share of only 5-6% in the year 2012-13. The share increased to 61-62% in the year 2015-16 (till September 2015), taking the lead in September 2014. Ola’s growth in January 2015 was 75-76%, as compared to 0-1% in June 2012.
Uber, starting operations in Bangalore in August 2013, had a market share of less than 1-2% in 2013-14, which increased to 9-10% in the year 2014-15. Uber maintained the second position from March 2015 onwards.
For the six month period up to September 2015, Ola’s market share increased marginally by 2% to 3%, while Uber’s share increased by about 20%-22%. From January to September 2015, Uber’s trip size registered growth of nearly 1200%, while Ola’s growth was about 63% during the same period. Ola’s market share started to decline after Uber’s entry, to 58-59% by September 2015.
Cab aggregation space
Despite Ola and Uber’s leadership in the space, newer players or even bigger players are entering the market.
- Vehicle manufacturer Mahindra & Mahindra Ltd recently said that it is set to foray into ride-hailing and cab aggregation business, and intends to not only make the product like low cost, spacious, urban electric taxis, but also plans to invest in the ride-sharing space.
- Mukesh Ambani-led Reliance Jio is rumored to roll out an app-based taxi service this year, for which it ordered some 600 cars to kick start the service. Jio spokespersons have denied this several times.
- Online motorbike taxi company Baxi said that it will enter cab aggregation for which it partnered with various taxi unions in Delhi, Ghaziabad, Gurgaon, Mumbai, Pune, Chennai and Bengaluru.
- Autorickshaw aggregator Jugnoo said recently that it has plans to enter into cab aggregation services to diversify its business.
- Chaalak Shakti, a cab union in Delhi launched its own taxi-hailing app in May this year, called SEWA to counter Ola and Uber.