Ratan Tata Invests in CabCompany Ola’s Electric Vehicle Project
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Ratan Tata has strengthened his position in India’s biggest cab aggregator, Ola
The funding is part of an underway series A round of financing
Ola Electric is attempting to develop an electric mobility ecosystem
OLA is one of India’s most respected car aggregator startup application. Started on 3rd December 2010 by the team of two IIT Bombay graduates, Bhavish Aggarwal, and Ankit Bhati. Bhavish Aggarwal is also an ex-Microsoft employee, he was part of it for almost two years after graduation. Soon after leaving Microsoft Bhavish to start an online company and sell short term tours and holidays packages online. In December 2010, Bhavish in pair with Ankit Bhati launched OLA Cabs in Mumbai and is now situated in Bangalore.
Indian Industrialist and chairman emeritus of Tata Sons, Ratan Tata has strengthened his position in India’s biggest cab aggregator, Ola, by investing an undisclosed amount in its emerging electric vehicle business. This is the second external investment in Ola’s electric project. The funding is part of an underway series A round of financing.
Ola believes that Tata’s investment would not only bring money but also deep experience and mentorship to promote Ola’s endeavour at making electric mobility operational at scale. In March, Ola Electric has generated an investment of 57 million (INR 400 crore) from Tiger Global and Matrix India.
“The electric vehicle ecosystem is developing brilliantly every day and I trust Ola Electric will play a vital role in its development and growth,” says Ratan Tata.
Anand Shah, Head of Ola Electric, is attempting to develop an electric mobility ecosystem, which includes charging infrastructure, battery exchanging and other products. Several pilots have been running to establish electric vehicles and charging solutions.
One of the pilotprogrammes was launched with Mahindra & Mahindra Ltd. in Nagpur, Maharashtra. The project allowed Ola drivers to use electric vehicles. Nevertheless, the project flunked down because of the disappointing response from cab drivers, some of which even returned the vehicle.
In March, Korean auto major Hyundai announced its $300 million investment in Ola cabs in an offer to become a total mobility solutions provider. Hyundai Motors and Kia motors would together work with the Bangalore-based company to produce customized electric vehicles and charging stations and booths.
ANI Technologies Pvt. Ltd is seeking for different types of electric four-wheelers as part of its plan to turn 20% of its services into electronic by 2021. The Government of India designated $1.5 Billion (INR 10,000 crore) of funds to promote electric mobility for three years from now till 2021 in the second phase of the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAM) scheme. According to this plan, Subsidies will be provided to commercial fleet aggregators on automobiles, not for two-wheeler vehicles.
Bhavish Aggarwal said, “Tata is a visionary who has inspired a generation of emerging entrepreneurs and we are honoured to have his guidance and direction as we work towards our target of a million electric vehicles in India by 2021.”
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