Online cab booking service, #olacabs has confirmed its Series B funding from Tiger Global and Matrix Partners. The company raised Series A in 2012 from Tiger Global. The funding amount, we have been hearing stands at $20mn, though the team declined to comment on this.
The fresh funding would be channelized towards market expansion. Olacabs will also utilize the funds towards scaling up technology infrastructure (they were the first ones to launch the uber cool real-time mbile app to track nearest cab).
Ola launched in Chennai a month ago and they have plans of scaling deep into major cities, including a few tier-2 cities and non-metros. The company is the largest cab aggregator with over 6500 cars in its 5 cities of operations.
These are interesting times for online cab booking services. Few months back, Uber launched in India, TaxiforSure raised Series A funding from Accel Partners, Helion Venture Partners and Blume Ventures and Savaari raised Series A from Inventus Capital.
For Olacabs, the Series B gives them a huge muscle power to experiment and expand aggressively -(Uber(s) of the world will take their own time to understand Indian audience).
Aside, Olacabs is the probably the first deal where Tiger and Accel had different interests (Accel :TaxiforSure, Tiger: Olacabs).
The Olacabs Story
I had been very interested in entrepreneurship from my college days and aimed to start my own company at some stage. While in Microsoft, I began actively searching for ideas to start a business. I left Microsoft and started an online company to sell short duration tours and holidays online.While running that business for a couple of months, I took a car rental from Bangalore to Bandipur and had a very bad experience. The driver stopped the car enroute, tried to renegotiate and abandoned us in the middle of the journey.This made me realize that this was an issue many consumers faced and providing a top class rental experience was a great opportunity! We changed our business to focus on this new opportunity and Olacabs was started!
Recommended Read : Olacabs Story : A Good Ride So Far [Interview]