Ola gets fresh funds to take on Mahindra’s Glyd – where’s Uber?

• The ride-hailing company’s subsidiary Ola Electric Mobility has raised ₹400 crores from existing investors.
  
• Ola has raised money 2 days after Mahindra and Mahindra launched its ride-hailing app Glyd which will use electric cars.
  
• Ola had announced to bring 1 million EVs on Indian roads by 2022.

Ola Electric Mobility Ltd, a company backed by Ola – India’s unicorn ride hailing app – has raised ₹400 crores from Ola’s existing and early investors Tiger Global and Matrix India.

The news come just two days after Mahindra and Mahindra announced the launch of its ride hailing service Glyd which would be using only Electric Vehicles (EVs).

The subsidiary company had come into being when Ola tried to push its electric mobility program in Nagpur in partnership with Mahindra. While the plan didn’t take off in Nagpur roads with drivers even reportedly returning the vehicles, Ola has stuck to its plan to bring 1 million Electric Vehicles on Indian roads by 2022.

This venture seems to be a part of Ola’s bigger plans of doing more than just putting cabs on the roads. Through Ola Electric, the company has already partnered with several OEMs and battery manufacturers, while looking at working with the automotive industry for solutions for electric vehicles.

According to the company’s official statement, they are currently running several pilots to deploy electric vehicles and charging solutions, including battery swapping stations, electric 2-wheeler and 3-wheeler services amongst others.

“At Ola Electric, our mission is to enable sustainable mobility for everyone. India can leapfrog problems of pollution and energy security by moving to electric mobility, create millions of new jobs and economic opportunity, and lead the world,” said Bhavish Aggarwal, Co-founder & CEO, Ola in an official statement.

Ola Electric is headed by Anand Shah, a former senior executive from the auto industry, and Ankit Jain, who headed Ola’s connected vehicle platform.

While Ola has responded to the Mahindra challenge, it remains to be seen how fast Uber can react to the growing competition.

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