Ola in talks with RNT Capital and Falcon Edge to raise $100 million

Ola, India’s largest ride sharing startup, is planning to raise $100 million from RNT Capital Advisors, a venture fund set up by Tata Sons chairman emeritus Ratan Tata, and the New York based hedge fund Falcon Edge Capital. RNT Capital is expected to lead the round with $60 million valuing the startup at $3.5 billion, a jump from the $3 billion valuation at which the firm raised capital during last funding round in Nov’16.

The startup had recorded a 4x increase in the number of rides during 2016, and has also reduced its burn rate by aggressively reducing the incentives it gives to the drivers. The company has also increased its domestic market share to 65% with Uber occupying the second spot. Ola has strategically shifted its priorities and is now working closely with numerous state governments to avoid any confrontations. It is also planning to introduce electric vehicles in next 3-4 months which will further boost its market share, and help in creating positive brand value for helping in pollution reduction.

The current fundraising drive is expected to put further pressure on Uber which is going through a rough ride from some time now. Be it the sexual harassment claims made by its previous employee, or the CEO’s confrontation with a local cab driver going viral on social media, Uber has been in bad eyes and is desperately looking for some good news ahead.