Ola raises Rs 670 crore in fresh funding; Ratan Tata pumps Rs 267 crore

India’s top ride hailing app Ola raised Rs 670 crore, or $ 104.40 million in fresh funding. Apart from FO Maurtitius, a venture between University of California and Ratan Tata, UC-RNT, also participated in the funding round.

While the UC-RNT Fund infused Rs 267.99 crore, FO Mauritius pumped in Rs 402 crore.

Ola is gathering ammunition to keep itself ahead of Uber, which raised about $250 million from SoftBank in November.

ANI Technologies, which runs Ola, raised investments of more than $1.5 billion from investors, including SoftBank Group, Tiger Global, Matrix Partners, Steadview Capital, Sequoia India, Accel Partners US and Falcon Edge.

While Ola has been successful in raising a sizable amount of funds, it continues to bleed on account of heavy advertising and promotional expenses and high employee cost.

The company posted a consolidated loss of over Rs 2,311 crore -- about Rs 6 crore a day -- during fiscal 2015-16.

ANI Technologies did see its revenues registering a stellar growth at Rs 758.23 crore during 2015-16 compared to Rs 103.77 crore in the previous fiscal.

Ola, which has a presence in 110 Indian cities compared to Uber's operations in 29, has been aggressively expanding its portfolio of services.