The acquisition is reportedly aimed at strengthening its shuttle services project that is currently at the beta stage.
Ola declined to comment on the news report when contacted by e27.
According to the report, Bengaluru-based Ola has earmarked investment of INR120-150 crore (around US$18 million-US$23 million) to launch chartered and shuttle intra-city bus services in Bengaluru and Gurgaon.
Recently, Ola raised around US$225 million led by existing investor Falcon Edge Capital. In April this year, it raised US$400 million in its Series E round of funding led by DST Global, with participation from GIC, Falcon Edge, SoftBank, Tiger Global, Steadview Capital and Accel Partners (US).
Geotagg, founded by IIT-Madras graduates Akhilesh Koppineni and Krishna Chaitanya, will help Ola address issues specific to urban traffic situations such as peak-hour traffic through its GPS-based public information systems solution for buses.
Ola will compete with startups like Ciytflo, rBus, Shuttl and Zipgo in the bus service market.
Primarily targetted at people who commute on taxis and two-wheelers, Ola plans to launch the shuttle service at the price of around US$1 per ride.
The shuttle service will be based on the model it offers for taxis and auto rickshaws. The commuter can use the app and see how far the nearest shuttle is and book a seat in-app through Ola Money. Users can also pay in cash.