Pages Navigation Menu

The blog of DataDiggers

Categories Navigation Menu

India’s Ola spins out a dedicated EV business — and it just raised $56M from investors

Posted by on Mar 1, 2019 in Ankit Jain, Asia, Automotive, Bhavish Aggarwal, carsharing, Co-founder, Collaborative Consumption, Companies, didi, Didi Chuxing, DST Global, electric vehicle, Flipkart, funding, Fundings & Exits, head, India, ola cabs, Sachin Bansal, Sequoia, Softbank, SoftBank Group, Steadview Capital, temasek, Tencent, tiger global, transport, Uber, United States | 0 comments

Ola, Uber’s key rival in India, is doubling down on electric vehicles after it span out a dedicated business, which has pulled in $56 million in early funding.

The unit is named Ola Electric Mobility and it is described as being an independent business that’s backed by Ola. TechCrunch understands Ola provided founding capital, and it has now been joined by a series of investors who have pumped Rs. 400 crore ($56 million) into Ola Electric. Notably, those backers include Tiger Global and Matrix India — two firms that were early investors in Ola itself.

While automotive companies and ride-hailing services in the U.S. are focused on bringing autonomous vehicles to the streets, India — like other parts of Asia — is more challenging thanks to diverse geographies, more sparse mapping and other factors. In India, companies have instead flocked to electric. The government had previously voiced its intention to make 30 percent of vehicles electric by 2030, but it has not formally introduced a policy to guide that initiative.

Ola has taken steps to electrify its fleet — it pledged last year to add 10,000 electric rickshaws to its fleet and has conducted other pilots with the goal of offering one million EVs by 2022 — but the challenge is such that it has spun out Ola Electric to go deeper into EVs.

That means that Ola Electric won’t just be concerned with vehicles, it has a far wider remit.

The new company has pledged to focus on areas that include charging solutions, EV batteries, and developing viable infrastructure that allows commercial EVs to operate at scale, according to an announcement. In other words, the challenge of developing electric vehicles goes beyond being a ‘ride-hailing problem’ and that is why Ola Electric has been formed and is being capitalized independently of Ola.

An electric rickshaw from Ola

Its leadership is also wholly separate.

Ola Electric is led by Ola executives Anand Shah and Ankit Jain — who led Ola’s connected car platform strategy — and the team includes former executives from carmakers such as BMW.

Already, it said it has partnered with “several” OEMs and battery makers and it “intends to work closely with the automotive industry to create seamless solutions for electric vehicle operations.” Indeed, that connected car play — Ola Play — likely already gives it warm leads to chase.

“At Ola Electric, our mission is to enable sustainable mobility for everyone. India can leapfrog problems of pollution and energy security by moving to electric mobility, create millions of new jobs and economic opportunity, and lead the world,” Ola CEO and co-founder Bhavish Aggarwal said in a statement.

“The first problem to solve in electric mobility is charging: users need a dependable, convenient, and affordable replacement for the petrol pump. By making electric easy for commercial vehicles that deliver a disproportionate share of kilometers traveled, we can jumpstart the electric vehicle revolution,” added Anand Shah, whose job title is listed as head of Ola Electric Mobility.

The new business spinout comes as Ola continues to raise new capital from investors.

Last month, Flipkart co-founder Sachin Bansal invested $92 million into the ongoing Series J round that is likely to exceed $1 billion and would value Ola at around $6 billion. Existing backer Steadview Capital earlier committed $75 million but there’s plenty more in development.

A filing — first noted by paper.vc — shows that India’s Competition Commission approved a request for a Temasek-affiliated investment vehicle’s proposed acquisition of seven percent of Ola. In addition, SoftBank offered a term sheet for a prospective $1 billion investment last month, TechCrunch understands from an industry source.

Ola is backed by the likes of SoftBank, Tencent, Sequoia India, Matrix, DST Global and Didi Chuxing. It has raised some $3.5 billion to date, according to data from Crunchbase.


Source: The Tech Crunch

Read More

Ola, Uber’s India rival, invests $100M in scooter rental startup Vogo

Posted by on Dec 18, 2018 in android, Asia, bangalore, Bhavish Aggarwal, Commuting, funding, Fundings & Exits, Hyderabad, India, Matrix Partners, ofo, Ola, Scooter, transport, Uber | 0 comments

We’re familiar with Uber cozying up to scooter startups — it has bought one and invested in another — but over in India, the U.S. firm’s key rival is hatching a major alliance of its own it invested $100 million in scooter rental startup Vogo.

Ola first invested back in August when Vogo raised an undisclosed Series A round from Ola, Matrix Partners and other investors, but now Ola is doubling down with this follow-on deal. It isn’t saying how much equity it has captured with this investment, nor the valuation that it gives Vogo but you can well imagine it is high for a company that has only just done its Series A.

As you’d expect, this is a strategic investment and it’ll mean that Vogo scooters will appear within the Ola app, from where they can be booked by the company’s 150 million registered users, “soon.” Bangalore and Hyderabad are the two cities where Vogo operates, but you’d imagine that it will lean on Ola to expand into other parts of tier-one India where Ola already has a strong presence.

Ola’s money is going directly into supply, with Vogo planning to buy 100,000 more scooters for its platform. The company’s scooters, for those who don’t know them, are unlocked using a one-time password generated from the company’s Android app. Scooters are either dropped off at a designated station, or the rider specifies that they are taking a round trip and then returns it to the station where they started.

Ola CEO and co-founder Bhavish Aggarwal — pictured in the top image alongside Vogo CEO and founder Anand Ayyadurai — said he hopes that the deal and integration will improve last-mile transportation options across India.

A selection of screen captures from the Vogo Android app

“Our investment in Vogo will help build a smart multi-modal network for first-last mile connectivity in the country. Vogo’s automated scooter-sharing platform, backed by Ola’s expertise in this space can help transform our cities. Together, we are thrilled to be at the forefront of India’s rapidly growing micro-mobility market,” he said in a prepared statement.

Ola previously invested in its own bike rental service last year, although that category has struggled in India as Chinese imports like Ofo have fled the country after struggling to develop a sustainable business in the country, and others outside of China. Ola and also Uber have offered motorbike taxis in India since 2016, but scooters offer a more individual approach.

Uber, for its part, doesn’t offer scooters in India at this point. But with India its second-largest market — it has reportedly crossed $1.6 billion in annualized bookings — you’d imagine that it is near the top of the company’s thoughts… although there is the business of that upcoming U.S. IPO to deal with.


Source: The Tech Crunch

Read More