China-based ride sharing service Didi Chuxing invested an undisclosed sum in India-based counterpart Ola today to extend its reach across Asia.
Founded in 2010 as Olacabs, Ola’s mobile app is responsible for more than 750,000 journeys each day across India, where it holds a market share of about 80%. Didi Chuxing’s funding will support expansion across India, with $75m going to its recently announced car leasing initiative.
Although the precise amount invested by Didi Chuxing, known as Didi Kuaidi until earlier this month, has not been disclosed, reports two weeks ago cited a regulatory filing stating Ola had raised $225m in a series F round that could reach $500m.
The series F round was at that point led by Falcon Edge Capital and also included telecommunications company SoftBank, Tiger Global Management, Steadview Capital, ABG Capital, Fii Ltr Focus Fund, JS Capital, Parkwood Bespin and Daniel Neary.
Ola had raised $675m in funding prior to the series F round, most recently securing $400m in a series E round led by DST Global and backed by Falcon Edge, GIC, Tiger Global, Steadview Capital, Accel Partners and ABG Capital that closed in April this year.
The series E round, which valued Ola at $2.5bn, followed a $210m investment by SoftBank in October 2014 at a $1bn valuation. Its existing backers also include Matrix Partners, Sequoia Capital, Kunal Bahr and Yuri Milner.
Perhaps more importantly, Didi Chuxing’s involvement in the round further illustrates its willingness to take on global market leader Uber in a range of territories by picking up stakes in its competitors.
Didi Chuxing participated in a $350m round closed by Singapore-based GrabTaxi in August 2015 before confirming that it provided $100m of the $680m raised by US-based Lyft in May.