Hyundai Motor Group and Kia Motors together invested $300 million in India’s ride-hailing giant Ola, marking their biggest combined investment, the Bhavish Aggarwal-led company said on Tuesday. The round is part of a strategic partnership under which the companies will jointly work toward creating mobility solutions for global markets.
This investment shows Hyundai’s continued interest in the cab-hailing space. The Korean automotive firm invested $250 million in the Southeast Asian cab-hailing company Grab about four months ago.
“India is the centerpiece 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, Hyundai Motor Group.
As for Ola, this partnership with Hyundai and Kia will see the three companies extensively collaborate on developing fleet and mobility solutions; building India-specific electric vehicles and infrastructure, among others.
The strategic collaboration also means these companies will co-create solutions to operate and manage fleet vehicles, marking the group’s first foray into the industry, as they expand operations from automobile manufacturing and sales to “total fleet solutions.”
This partnership is not only going to benefit consumers, but Ola’s drivers as well.
It will offer Ola drivers financial services, including lease and installment payments.
“This partnership will also significantly benefit driver partners on our platform, as we collaborate with Hyundai to build vehicles and solutions that enable sustainable earnings for millions of them, in the time to come,” according to Bhavish Aggarwal, chief executive of Ola.
The investment also reflects Ola’s efforts to raise money from other investors in an attempt to keep existing investor Japan’s SoftBank at bay. The company last received $100 million from Flipkart’s co-founder Sachin Bansal.
Moreover, Ola’s electric mobility unit received ₹400 crore in a round that saw participation from Matrix Partners and Tiger Global.
Source: Mint