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Cab hailing firm Ola said on March 19 it has raised $300 million from South Korea's Hyundai Motor Group in a strategic deal under which the companies will also collaborate on building India-specific electric vehicles and infrastructure.
The companies will be creating solutions to operate and manage fleet vehicles and the partnership will also offer Ola drivers various financial services, including lease and instalment payments.
The investment is part of Ola's ongoing Series J round.
Hyundai Motor Group and Ola have also agreed to develop cars and specifications that reflect the needs of the ride hailing market. Data accumulated during service operation will allow the companies to make constant vehicle improvements to better meet local needs and specifications.
“India is the centrepiece of Hyundai Motor Group’s strategy to gain leadership in the global mobility market and our partnership with Ola will certainly accelerate our efforts to transform into a Smart Mobility Solutions Provider,” said Euisun Chung, Executive Vice Chairman of Hyundai Motor Group. “Hyundai will proactively respond to market changes and persistently innovate to deliver greater value to our customers," he added.
Hyundai Motor Group is a global corporation that deals in automobile, steel and construction. The group has over 250,000 employees worldwide and it has Hyundai Motor Co and Kia Motors Corp as its two automobile brands.
With this deal, the group expects to accelerate its transition from a car manufacturer into a smart mobility solutions provider.
Ola, which aims to create over two million livelihood opportunities in the mobility ecosystem by 2022, already hosts 1.3 million partners on its platform.
Founded in 2011 by Bhavish Aggarwal and Ankit Bhati, Ola integrates city transportation for customers and drivers onto a mobile technology platform.
The funding happens soon after Ola raised $92 million from Flipkart founder Sachin Bansal.
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