Indian Uber rival Ola has raised $500 million, the start-up said on Wednesday, valuing the company at $5 billion, according to industry sources, as it looks to fend off competition from its U.S. opponent.
The latest round of funding will help the taxi app – which is the leader in the Indian market – to "accelerate its growth" at home by "innovating mobility solutions for the local market", the company said in a press release.
Ola has now raised over $1.3 billion of external funding, it said, with $1.2 billion coming over the past year.
New investor Baillie Gifford led the latest funding round with existing investors Falcon Edge Capital, Tiger Global, SoftBank Group and DST Global all on board. Didi Kuaidi, China's Uber rival which is a strategic investor in Ola, was also involved in the funding round.