The taxi space will see a fierce rivalry between the big players in the coming days with Uber and Ola looking across borders. Now, Alibaba-backed Didi Kuaidi may be joining hands with Ola to take down the world’s most-valued tech company Uber according to the report from TOI.
Didi seems to be creating a global alliance against Uber, as this investment move comes after it acquired stakes in San Francisco-based Lyft and Malaysia’s GrabTaxi.
Ola is finalising the second tranche of $200 Mn of its $500 Mn financing round led by GIC – Singapore’s sovereign wealth fund, Didi Kuaidi and Baillie Gifford – a Scottish investment firm which is a shareholder in Flipkart. This will put the valuation of Ola at $5 Bn, TOI reports.
This week, Ola had raised $225 million in a fresh round round of funding from existing investor Falcon Edge Capital with participation from New York-based hedge fund and its existing investors Tiger Global Management LLC and Softbank Corp.
GIC is expected to pump-in $100 Mn this time. Didi may invest around $30 Mn and Yuri Milner’s DST Global may participate in this round.
Ola founders Ankit Bhati, 28, and Bhavish Aggarwal, 29, who are also the youngest on the list of super rich Indians. With their personal fortunes estimated at Rs 2,385 crore each, the duo are jointly ranked 238th.
Uber is the most-valued tech company in the world; with a valuation of $51 Bn. It recently broke Facebook’s record to become the youngest privately-held company to cross the $50 Bn valuation mark. Last week it has raised, another $1.2 billion in venture capital from Chinese investors. Uber previously said it had earmarked at least $1 billion in a previous fund-raising to grow throughout Asia, and it will use the additional financing to continue in the same vein.
Uber is doubling its headcount in India to strengthen its position. While China is Uber’s fastest growing market, India comes second.
Didi Kuaidi is China’s largest taxi aggregator app and is presently valued at $16 Bn. It has become the biggest competitor of Uber and is backed by $4.4 billion investors money.