Uber Technologies has received USD 75-100 million funding from a private equity fund advised by Tata Capital, as the US based tax-hailing service steps up investment to average more than 1 million rides a day in India in the next nine months, reported PTI.
Tata Opportunities Fund (TOF) in a statement said it will make a "significant" investment in US-based taxi hailing app Uber. While the companies did not give amount invested, sources said the funding could be between USD 75 million and USD 100 million.
The funding will allow Uber to benefit from its network in the country, Tata Capital, part of the USD 109 billion coffee-to-cars Tata Group with over 100 group firms, said without elaborating.
Uber plans to average more than 10 lakh rides a day in India over the next six to nine months from current average of about 2 lakh trips a day. Rival Ola, backed by Japan's Softbank, reportedly clocks more than 7.5 lakh rides a day.
TOF is the second Indian entity to invest in Uber after The Times of India group's Times Internet bought a small stake for about Rs 150 crore in the US-based company in March.
"This is TOF's first investment in a company based outside India. We are delighted to support Uber's growth and continued success around the globe, more recently in China and India.
"Uber's technology continues to transform the way millions of people commute while creating economic opportunities for hundreds of thousands of first time entrepreneurs (drivers and owners), who value the flexibility it offers," TOF Managing Partner Advisory Team India Padmanabh Sinha told PTI.
Interestingly, Tata group Chairman Emeritus Ratan Tata is an investor in Uber's rival Ola, in his personal capacity.
"Tata is synonymous with entrepreneurialism in India and we are incredibly excited to have TOF on board as a partner. Right now, we are focusing on offering a great service, backed by security and easy payment and hassle-free payment options," Uber India Head Amit Jain said.
Uber, which launched its services in India less than two years ago, operates its services in 18 Indian cities and has a current base of over 1,50,000 driver partners. It is registering 40 per cent month-on-month growth (in terms of trips taken by customers) and claims to have a market share of over 35 per cent in India.
Last month, the company had announced an additional investment of USD 1 billion in India as it targets one million rides a day in 6-9 months.