Mumbai based car rental startup has raised fresh Rs.250 crore of funding from India focused-hedge fund Steadview Capital and Silicon Valley's VC firm Sequoia Capital and this made 3-year old Olacabs valuation of over Rs 1,000 crore.
The money raised would be used to quickly expand Olacabs services into new cities, categories and strengthen the cab aggregators' driver ecosystem in a highly competitive market. The startup has raised around $65 million of funds in three rounds of institutional funding.
Earlier in November last year Olacabs have raised undisclosed amount in Series B funding from Matrix Partners India and Tiger Global Management. Raised Rs.2 crore angel round in 2011 and the subsequent 40 crore Series A funding from Tiger Global Management in April 2012.
Olacabs' valuation has more than doubled since November last year when it got on board Matrix Partners in a Rs 120-crore fund-raise. Now Olacabs has joined 1000 crore club of India with other internet startups players such as Quikr, Zomato and Bookmyshow and this exclude billion-dollar club members such as Flipkart and Snapdeal.
Notably, Sequoia Capital has also invested in Zomato which also have valuation of more than Rs.100 crore.
Olacabs, which works on the marketplace model, has 11,000 cabs across nine cities on its platform and is said to be clocking 12,000 bookings per day, 50% of which are through its mobile app. Olacabs is the first cab service in India to launch a mobile app to book and monitor cabs.
As reported to TOI, Olacabs work on the asset-light model where, instead of owning the fleet themselves, they facilitate driver entrepreneurship. Ola, in fact, helps drivers in financing loans at lower interest rates for the purchase of their cars and has tie-ups with car manufacturers.
The overall Indian cab market, estimated at about $4 billion and Olacabs is growing 30% month-on-month.
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