Business
Ola Electric becomes India’s newest unicorn with new $250 million investment from SoftBank
India’s Ola is further widening its lead over Uber in the nation — and getting the help it needs from their mutual investor. Ola Electric has raised $250 million from SoftBank as India’s largest ride hailing firm pushes to scale its electric vehicles business in the country.
The Series B financing round, details of which emerged in a filing to the local regulator on Tuesday, valued Ola Electric at $1 billion, a source familiar with the matter said.
The infusion comes as New Delhi looks to take a serious step in electrifying the existing fleet of cabs and scooters in the country as it attempts to curtail air pollution and carbon emissions. The country has set an ambitious goal to convert 40% of the fleet to electric by 2026.
Just so it happens, Ola has been working on electric vehicles for several years. The company is currently running several two-wheeler and three-wheeler electric vehicles pilot programs across the nation. It is also building charging infrastructure and swappable battery systems for these vehicles.
Ola Electric, which raised $56 million earlier this year, plans to bring 10,000 e-vehicles to road by end of this year and deploy a million similar vehicles over the coming years. The parent group, which raised $300 million from Hyundai and Kia to expand its mobility solutions and electric vehicles programs as part of an ongoing Series J round earlier this year, is also partnering with original equipment manufacturers to scale the EV business.
The active participation of SoftBank in Ola quells speculations that the Indian firm was trying to distance itself from the conglomerate fund.
The firm, which already has presence in the UK, New Zealand, and Australia, last month announced that it will set shop in Uber’s backyard. Ola said it will build a new advanced technology center in San Francisco and employ more than 150 engineers there.
“As we think of the next decade, we want to invest in and we want to be very relevant on the global scale business front as well as building new-age, cutting edge technology which impact the new age business model of the future, there is no better place in the world to do it than here in the Bay area, we have made a small start, we will be hiring close to around 100-150 people here this year and from there we will take it beyond,” Ola cofounder and CEO Bhavish Aggarwal said at a recent conference.
Uber, meanwhile, currently has little to no electric vehicles play in the nation. Just two months ago, it partnered with electric bicycle sharing platform Yulu to conduct a trial in Bangalore. Globally, however, Uber ATG span out of the San Francisco-headquartered firm and raised capital for its self-driving business. China’s Didi is reportedly eyeing going the same route.
-
Business7 days ago
API startup Noname Security nears $500M deal to sell itself to Akamai
-
Entertainment6 days ago
NASA discovered bacteria that wouldn’t die. Now it’s boosting sunscreen.
-
Entertainment7 days ago
How to watch ‘Argylle’: When and where is it streaming?
-
Business6 days ago
Tesla drops prices, Meta confirms Llama 3 release, and Apple allows emulators in the App Store
-
Business5 days ago
TechCrunch Mobility: Cruise robotaxis return and Ford’s BlueCruise comes under scrutiny
-
Entertainment5 days ago
‘The Sympathizer’ review: Park Chan-wook’s Vietnam War spy thriller is TV magic
-
Business4 days ago
Tesla layoffs hit high performers, some departments slashed, sources say
-
Business4 days ago
Meta to close Threads in Turkey to comply with injunction prohibiting data-sharing with Instagram