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May 15, 2019

Ola has pumped in $60 Million to run International Operations

Ola, an India-based unicorn is establishing its business internationally. It is currently operating in 20 foreign cities, including nine in Australia, seven in the UK and three in New Zealand.  The Bengaluru based company, Ola has reported a revenue of INR 2222 crores ($310 million) for FY18. The international expansion is for the better returns available and lower burn rates in developed markets, as compared to India. The ride-hailing platform has pumped an investment of $60 Million to operate internationally. These are the additional costs of running local operations, marketing and investments. Ola Singapore Pte- the investment entity that looks after the international businesses of OLA, received $6 million from its parent group, ANI Technologies. Australia, UK, Sri Lanka, Bangladesh and the US fall under this unit of OLA. The company has also expanded its business reach into financial and food delivery sectors under the brand called Food panda.

‘If Ola is careful in how it selects which market to enter, this can be a good way for it to grow its topline”- Says, Karthik Hosanagar, Professor, Wharton Business School.

 

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