Ola is reportedly in talks with SoftBank to raise up to $500 Million in a fresh round of funding.The terms of the investment are undisclosed.
Ola may also hold discussions with other investors for its possible fund-raising exercise.Ola also recently held talks with automobile major General Motors for a likely fund raising.
The decision to raise funds by Ola comes at a time when the US rival is flush with capital following its exit from China where it sold its business to its competitor Didi Chuxing.
In China, Uber couldn’t stand up to the growing onslaught from the deep-pocketed Didi, prompting the former to eventually merge its business in the Dragon nation. With Uber exiting China, the company has got enough room now to focus on India.
SoftBank has recently invested $750 Million in Singapore-based online taxi-hailing platform Grab. If the deal with Ola falls into place, it is speculated to be the largest deal by SoftBank in India.
Ola recently said it has over 70 percent market share of the country’s taxi app market with an average of 1 million rides per day. Uber, too, claims that it has been fast expanding in India having presence in 28 cities and handled 5.5 million rides per week in August.