Fri. Mar 29th, 2024
Ola Cabs

Ola, the homegrown cab-hailing startup, has pumped-in around ₹100 crore into its car leasing business — Ola Fleet Technologies.

As per the documents filed with the Corporate Affairs Ministry, the proposal for Ola investing ₹100 crore into Ola Fleet Technologies was accepted by the board of the company last month.

The investment comes at a time when the company is having an intense battle with the US-based cab hailing startup Uber. Both the companies are fighting to grab the majority of the market share in India.

Ola Fleet Technologies, was launched in the year 2015, as a leasing subsidiary to finance cars to be added to its platform and had announced an investment of ₹5,000 crore. Through Ola Fleet Technologies, the Bengaluru-based firm focuses on building its own fleet and skilling drivers.

With the help of this program, drivers of Ola could lease a car for a minimal initial deposit and then pay monthly lease payments with an option to own the vehicle after a period of three years.

Ola Fleet had posted a loss of ₹13.3 crore for FY16 compared to a profit of ₹3.9 crore in the previous year. Ola, for its core business, posted a consolidated loss of over ₹2,311 crore, which comes at around ₹6 crore a day, during fiscal 2015-16.

So far, Ola has raised close to $2 billion in funding from investors like Tiger Global, Matrix Partners, Steadview Capital, Sequoia India, Accel Partners US and Falcon Edge. Recently in April this year, it received of ₹1,675 crore from SoftBank.

By Jeet