Ola, the homegrown cab-hailing startup, has pumped-in around Rs. 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 Rs. 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 Rs. 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 Rs.13.3 crore for FY16 compared to a profit of Rs.3.9 crore in the previous year. Ola, for its core business, posted a consolidated loss of over Rs.2,311 crore, which comes at around Rs.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 Rs.1,675 crore from SoftBank.
Ola invests Rs 100 crore in car leasing subsidiary
