Ola has managed to raise $300 Mn from South Korean auto company Hyundai and Kia Motors to fund a partnership with three other companies who will collaborate on developing India based electric vehicles and supporting infrastructure. The investment by automakers is to brand themselves as smart and e-friendly mobility solutions providers.
Bhavish Aggarwal, co-founder and CEO Ola said that the partnership will also significantly benefit driver-partners as the collaboration with Hyundai, as that enables the partners to be provide sustainable solutions and profits.
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The strategic collaboration also drives the companies to not just develop the electric vehicles but also come up with plans to manage the fleet vehicles.
“India is the centerpiece of Hyundai Motor Group’s strategy to gain leadership in the global mobility market and our partnership with Ola will certainly accelerate our efforts to transform into a Smart Mobility Solutions Provider,” Euisun Chung, executive vice chairman of Hyundai Motor Group, said in a joint statement on March 19.
The $300 Mn funding round is part of Ola’s larger ongoing $500 Mn equity financing round, with companies like Flipkart and Mirae Asset-Naver Asia Growth Fund participating in the funding rounds.