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Matrix, Tiger Global back Indian cab rental firm Olacabs

  • Mirzaan Jamwal
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Olacabs has received a Series B round of funding from Matrix Partners India and existing investor Tiger Global Management, reportedly worth $20 million.

The company was founded in 2010 and raised $5 million from Tiger last year. It lists the available inventory from third-party cab firms and rental car operators in five cities - Delhi-National Capital Region, Mumbai, Pune, Bangalore and Chennai. It takes a 20% cut of the fare from bookings made through the company platform.

Olacabs will use the funds to expand its operations to new cities and to deepen its technology and analytics expertise. It will also help drivers and operators in its network buy their own cars.

There are several VC-backed start-ups in the fragmented car travel vertical in India. PE firm India Value Fund Advisors' Meru taxi service was one of the earliest to launch and began operations with its own fleet of cars. Subsequent services have used an asset light aggregator model, such as Taxiforsure.com, which is backed by Accel Partners, Helion Venture Partners and Blume Ventures, and Inventus Capital Partners-backed Savaari Car Rental.

Earlier this year taxi hire app Uber started operations in Bangalore and Delhi.

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