Tiger, Matrix lead $56m round for EV spin-out of India's Ola
Tiger Global Management and Matrix Partners India have co-led a INR4 billion ($56.3 million) investment in an independent electric vehicle (EV) company spun out from Indian ride-hailing platform Ola.
Both Tiger and Matrix India are existing early-stage investors in Ola, having first backed the company in 2012 and 2013, respectively. Ola is considered India’s third largest internet start-up behind Flipkart and Paytm and is currently raising a $6 billion Series J round that attracted a $91 million commitment from a co-founder of Flipkart last month.
The latest investment supports the launch of an EV business known as Ola Electric Mobility that focuses on deploying charging and battery swapping networks for the commercial EVs. Last year, Ola announced it aimed to bring one million EVs to India's roads by 2022. Ola Electric claims to have already partnered with several equipment manufacturers, including battery companies.
Development of enabling infrastructure at scale will be Ola Electric’s initial priority and is expected to leverage support from various national and state-level government initiatives aimed at commercial fleet electrification. Lee Fixel, a partner at Tiger, described the new company as “the early front-runner” in this space and well positioned to build an ecosystem for electric mobility.
“The first problem to solve in electric mobility is charging: users need a dependable, convenient, and affordable replacement for the petrol pump,” Anand Shah, head of Ola Electric, said in a statement. “By making electric easy for commercial vehicles that deliver a disproportionate share of kilometers travelled, we can jumpstart the electric vehicle revolution.”
Shah’s automotive experience includes a management and technology advisory role with Audi, as well as being a senior vice president for strategic initiatives at Ola. He will be joined by Ankit Jain, who previously headed Ola’s connected vehicle program. This included responsibility for the development of the in-car information and entertainment console Ola Play.
Founded in 2010, Ola claims to be India’s most popular mobile app for personal transportation, offering taxis, luxury vehicles, auto-rickshaws, and shuttle buses through its platform. The company is present in more than 110 Indian cities, providing up to one billion rides a year. It has received backing from several VCs and strategic peers, including Didi Chuxing, which joined a $500 million Series F round in 2015.
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