Ola Raises $50 Million From New York Based Hedge Fund

Cab aggregator Ola based in Bengaluru has raised $50 million (Rs. 322 crores) from Tekne Capital Management LLC., a hedge fund based in New York. As a part of the ongoing funding round, India’s largest taxi aggregator is also in talks with Coatue Management LLC., for raising more funds.

This round of investment is expected to raise Ola’s valuation from $3.5 billion to $3.65 billion. Last month, Ratan Tata’s venture RNT Capital Advisers LLP., and US-based hedge fund Falcon Edge Capital LP, together invested around $100 million (Rs. 670 crores) in the company. This round of funding was raised at a lower valuation of $3 billion compared to the $4.5-$5 billion in August 2015.

Estimates place Ola’s market share in India to now be around 65% and are aggressively working to increase its stand in the market with several new projects. Rival company Uber holds the remaining 35% but recently has come into hot water with the CEO Travis Kalanick taking a leave of absence. Ola reportedly also has plans to release electric cars in various cities while its rival Uber has been slapped with an intellectual property lawsuit by Waymo.