India-based ride sharing platform Ola has begun early-stage discussion with software provider Microsoft over an investment that will be between $50m and $100m in size, LiveMint reported today.
The investment would form part of an agreement for Ola to switch to using Microsoft’s Azure cloud platform. The company currently uses Amazon’s rival offering, Amazon Web Services, but Microsoft CEO Satya Nadella is pushing to increase Azure’s market share in India.
Founded in 2011 as Olacabs, Ola operates a ride hailing platform that lets users book taxis, auto rickshaws, luxury vehicles and shuttle buses across India.
The company is in the process of raising funding in a round that has already attracted hedge fund Tekne Capital Management, which committed less than $50m last month, investment firm RNT Capital Advisors and hedge fund Falcon Edge Capital.
Telecommunications and internet group SoftBank had joined two undisclosed existing backers to invest $330m in Ola in February 2017.
Reports in November 2016 suggested Ola was hoping to raise up to $600m in a series G round led by SoftBank, and LiveMint claims the $330m investment and the commitments from Tekne, RNT and Falcon Edge all form part of the same round.
Ola needs large amounts capital to fight stiff competition from US-based rival Uber, which has increased its focus on the Indian market after losing out to rival Didi Chuxing in China.
The company has so far raised more than $1.6bn from investors also including Didi Chuxing, Baillie Gifford, Falcon Edge Capital, Tiger Global Management, DST Global, Steadview Capital, ABG Capital, Fii Ltr Focus Fund, JS Capital, Parkwood Bespin, Vanguard Group, Accel Partners and GIC.