Hyundai Motor Company is in high-level talks to invest in Ola, a Bangalore based domestic ride company of India. Hyundai the South Korean car manufacturer is planning to invest around 250 million crores to 300 million crores in Ola.
Hyundai, the automaker company, might be able to hold 4 percent stake in the Bangalore based domestic Company Ola which is planning to raise more funds estimated to around 6 billion dollars. If the deal between the Hyundai and Ola takes place, then it will be the second investment of the automaker company in the Indian startup companies.
As of now, Ola the domestic ride-hailing company is on the way of raising fund and soon will be able to get a fund from Hyundai. The deal between the two companies might be signed in the days to come. Meanwhile, Hyundai and Ola refuse to comment on the fundraising matter.
Earlier, Hyundai had led the funding round of worth 100 crore rupees mainly in a car rental startup company Revv, back in August 2018.
The investment from Hyundai is a part of Ola’s ongoing equity financing round of worth 500 million dollars; the equity financing round has observed the involvement of Sachin Bansal- the co-founder of Flipkart and Mirae Asset-Naver Asia growth fund. The report about Mirae Assets talks with Ola was first stated by ET on February 11.
Hyundai has already invested in a Singaporean ride-hailing company Grab, back in November 2018. The investment made by Hyundai in Grab is around 250 million dollars and Hyundai is seen to be active in the new economy mobility space.
When Sachin Bansal resigned from Flipkart, the e-commerce company, the entrepreneur had invested in Ola amounting to 650 crore rupees, and it is considered as the largest private investment in the domestic company.
The investment company, Temasek has managed to hold a stake of around 5 percent in Ola’s parent company ANI Technologies by investing about 150 to 200 million dollars in the year 2018.
Hyundai’s major competitors like Ford Motor Co, Toyota Motor Corp and General Motors have all supported the ride-hailing companies namely, Uber and Lyft because they are supporting for slower car ownership around the world.
Bangalore based ride-hailing company Zoomcar has been profited by this global trend. Mahindra and Mahindra Ford, both of them have put their money in Zoomcar Company through various financing rounds. Meanwhile, Toyota has managed to raise 30 million dollars in the funding round in an auto services company Droom in 2018.
Auto giant companies are trying to withstand the failing demands of the global auto market by making investments in urban mobility space which also adds ride-hailing industries into it. Some of the major companies like General Motors, Toyota Motor Corporation and Ford Motor Company have helped the ride-hailing companies to raise funds like Uber and Lyft. This global trend has now been noticed in India too.