Ola is all set to invest $500 million to launch a “self-drive” service to further boost its transportation solutions.
The $500 million will come from a mix of debt and equity spread over next 2 years.
The strategy is deploy nearly 10,000 cars including luxury sedans and SUVs in all major cities of India in various formats such as rentals, subscription and corporate leasing.
Instead of going with their regular fund raiser like Softbank or Tiger global this time Ola plans to seed a new business as the debt would be raised through Ola Fleet Technologies.
Till date Ola has raised $3.67 billion and valued at roughly $6 billion
Ola is in tough fight with Uber and has sought a different strategy to counter the competition by collaborating with Hyundai &Kia. It has raised USD 300 million from the South Korean auto majors to design India specific mobility solutions.