San Francisco headquartered taxi hailing service Uber has received fresh investment from Tata Opportunities Fund, a private equity fund advised by India’s Tata Capital, the amount of transaction was not disclosed however as per sources close to the matter it was between $75 million and $100 million amount of investment.
Uber is also planning to increase the number of rides in the country to more than a million per day in the next six to nine months, the company’s India president, Amit Jain said in an email.
With investment in Uber, Tata Opportunities Fund (TOF) marked its first investment outside India. TOF will not be taking a board seat in Uber Technologies.
Last month, Uber announced that it is going to invest $1 billion in the Indian market in the next nine months. This investment is separate from that committed amount, clarified Uber.
In India, Uber competes with India’s home grown taxi app Ola, which is backed by Softbank and Dst Global and has raised around $700 million and is in late stage talks to raise close to $500 million. Ola is valued at close to $4.5 billion while Uber is valued at $50 billion.
“Uber is a global innovator and with the strong use of technology, it is creating the taxi aggregation market globally,” said Padmanabh Sinha, Managing Partner of Tata Opportunities Fund’s advisory team in India.
The Tata Opportunities Fund (TOF) is a third party private equity fund which invests in select Tata group entities as well as other independent Indian businesses.
The Fund – which has a medium to long term investment horizon and is backed by a team of professionals with a mix of investment and operational experience, can invest through a mix of growth capital and buy-out strategies with typical deals in the range of US$ 30 – 200 million. For larger deals, the Fund has the capability to mobilise larger amounts by way of co-investments from its investors.