South Korean carmaker Hyundai is reportedly in talks with the app-based ride-hailing cab service Ola to buy 4 per cent stakes in the latter...
South Korean carmaker Hyundai is reportedly in talks with the app-based ride-hailing cab service Ola to buy 4 per cent stakes in the latter's company. According to the report filed by Times of India, Hyundai plans to buy stakes in Ola for a sum of $250 million, according to the sources in the know. The TOI report also mentions that if this deal with the Bengaluru-based company is successful than the total valuation of Hyundai Motor will increase to a massive $6 billion.
Ola, as part of its ongoing funding round, is planning to secure about $400 million to $500 million investments, and investors like Sachin Bansal the co-founder of Flipkart and Hong Kong-based hedge fund Steadview Capital have already announced their plans to invest in Ola. In fact, the financial services group, Mirae Asset-Naver Asia Growth Fund, will also partake in the funding round and has committed to invest around $30 million to $40 million. If things fall in the places between Hyundai and Ola, it will be the first major investment by a leading automobile manufacturer in the India-based ride-hailing company.
Ola is currently one of the leading ride-hailing apps in the country, and industry analysts claim that 7-8 lakh cars are on platforms like Ola and Uber. Furthermore, a partnership with Ola will also allow Hyundai to push its vehicles through this medium. Currently, the company's Hyundai Xcent Prime is one of the popular choices in the taxi segment, and soon we might even see the entry of the Hyundai Santro, and maybe even the Kona Electric once it's launched in India.
In fact, last year even Mahindra partnered with Ola to launch its e2o electric hatchbacks in Nagpur as part of a pilot project. Other manufacturers and investors who have been investing in similar projects include - Ford and Mahindra who have invested in Zoomcar, Hero MotoCorp's investment in Ather Scooters, and Toyota's investment in Droom among others.
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