Business

Ola to raise $200mn from Microsoft to Develop Connected Vehicle Platform

Ola Cabs logo taken from the app

On one hand we have Ola, which is currently the second largest unicorn in India with a valuation of nearing $10 billion. The startup grew as a ride hailing company and then later entered the payment and food delivery sectors as well while keeping its core domain as an internet giant.

On the other hand, we have Microsoft that needs no introduction. It has been on the top most level of the technology companies’ pyramid for decades now. Its co-founder, Mr Bill Gates have been crowned the world’s richest man for more than a dozen times. The company’s core has always been software as its product, the Microsoft Windows is installed as the primary OS on almost 80% of the Personal Computers all over the world.

The technology world is changing recently as the companies are embracing the internet and playing around with it to get the maximum out of it. This has in turn benefited the users as they tend to get very convenient features over the internet that were earlier quite impossible to imagine in the physical world.

These two internet giants form India and the US have decided to join hands to create a platform that would have a huge positive impact on the automobile industry. Microsoft have decided to invest in Ola an amount of $200 million for a 4.5% stake in Ola’s parent company, ANI Technologies Pvt. Ltd.

This is not the first instance of these two companies working together. Earlier in 2017, Ola and Microsoft planned to work together to develop a platform that would help the electric vehicle and autonomous vehicle sector with connected mobility.

In the current investment plan, the deal is nearing its end and will take another 10 to 5 days according to media reports. Post that, the companies can resume their work on their plans to create the smart and connected platform. Microsoft is a veteran in the software development field with its recent foray into the cloud computing systems, where it is the second largest player at the moment. Ola is a mobility sector giant with huge sets of data regarding mobility from its millions of riders and drivers every day. These two companies can together create a platform beneficial for the whole world as they both claim.

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