Olacabs, the online marketplace for cabs and car rental services in India, announced its Series C funding of over US$41million from Steadview Capital, an India-focussed fund based in Hong Kong, and venture capital firm Sequoia Capital.
Ola will use the funds to expand operations to newer markets, as well as invest a sizable sum into the supply ecosystem to enable micro-entrepreneurship in the driver stakeholder segment.
Bhavish Aggarwal, Co-founder and CEO, Olacabs said, “Building a high quality transportation network in India involves substantial effort and investment. We are thrilled about the growth we are witnessing and the possibilities this investment opens up for us. We intend to be present in at least 20 cities by the end of this year. We are also deeply involved with the supply ecosystem by helping drivers become entrepreneurs and creating socio-economic empowerment for them. We are happy to announce that we are earmarking a sum of US$16 million towards nurturing this ecosystem in the next one year. Steadview and Sequoia are great partners to have on board, with both of them bringing deep understanding of consumer businesses.”
In November last year, Olacabs had raised Series B round of funding led by Matrix Partners India with participation from existing investor Tiger Global Management.
“The need for quick and efficient point to point transport is very large in urban India. Ola is the leader in addressing this need via technology, benefiting both consumers and drivers. We think highly of Bhavish, Ankit and the team at Ola and look forward to partnering with them,” said Gautam Mago, Principal, Sequoia Capital India Advisors.
Olacabs was founded in January 2011 by two IIT Bombay alumni Bhavish Aggarwal and Ankit Bhati. Through its mobile app, customers can book cabs and track their ride while cab drivers get booking requests on a GPS-enabled Android device that also helps in navigation and billing. Ola also works with leading car manufacturers and financial institutions to help drivers buy their own cars at huge discounts and access to affordable repayment schemes.
“Ola is solving a real problem by providing Indian consumers a safe, comfortable, standardised service offering at transparent and competitive prices. At the same time, it is serving cab drivers and operators helping them buy their own cars and improving business for them, thereby nurturing micro-entrepreneurship. Bhavish is an outstanding entrepreneur who we are privileged to work with and we welcome Steadview and Sequoia to the Ola partnership,” said Avnish Bajaj, Co-founder and Managing Director, Matrix India.