Cab hailing firm Ola has raised $300 million in a corporate round of funding from South Korean automobile giant Hyundai Motor Group in a strategic deal under which the companies will also collaborate on building India-specific electric vehicles and infrastructure.
The funding is part of ongoing Series-J round
Both Ola and Hyundai will be creating solutions to operate and manage fleet vehicles and the partnership will also offer Ola drivers various financial services, including lease and installment payments.
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.
Bhavish Aggarwal, Co-Founder and CEO of Ola said, “We’re very excited about our partnership with Hyundai, as Ola progresses to built innovative and cutting edge mobility solutions for a billion people. Together, we will bring to market a new generation of mobility solutions as we constantly expand our range of offerings for our consumers.” Aggarwal further added, “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.”
“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, which is also an investor in Revv, a Gurgaon-based Self-Drive Car Rental startup, 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.