While UBER is facing a bleak future after the ouster of its founder Travis Kalanick from the position of CEO and the board, OLA is now in the news but for positive reasons. The cab aggregator which has much better business in India and was the first to be founded in this category is believed to be in talks with Tencent Holdings.
OLA already has major funding from Japanese investment major Softbank which has also invested in Flipkart,Snapdeal to name a few. OLA wanted the stake of Softbank to be reduced to some extent so that they will not have complete control over the company. Tencent also has a major stake in Flipkart and in Byju’s(an edutech startup).
“Tencent executives were in Bangalore last week and they met the Ola management team to discuss the transaction,” said one of the person who is involved in the discussion. He also said that once the funding is complete, it will value the company at $4 Billion.
OLA had also held talks with technology giant Microsoft but that did not fructify till date. Once Tencent invests the amount, its total investment in the country would cross 1 Billion and would be placed in the league of Softbank and Tiger Global.
Tencent has also invested in China’s Didi Chuxing, US-based Lyft, besides Southeast Asian bike taxi firm Go-Jek which all are the notable rivals of Uber.
Ola is planning to introduce electric cars in its fleet. Ola has raised funds from RNT Capital Advisors, Falcon Edge and Tekne Capital Management.