Tata Capital Ltd. announced that it will make a significant investment into Uber Technologies Inc. to aid the ride-sharing company into expanding in India. Due to this investment, Uber will benefit from its network all across the country.
Tata Capital is part of a $109 billion coffee-to-cars conglomerate service that includes more than 100 group firms. Tata’s managing partner, Padmanabh Sinha, commented on the topic, saying that the fund usually invests up to $100 million in its deals, which sounds like a good deal for Uber. The transportation network company announced last month that it would spend $1 billion to reach more cities in India with the company target being of 1 million trips every day in the following six to nine months. Microsoft Corp. is also said to have agreed to invest around $100 million in Uber, valued at aprox. $50 billion.
Travis Kalanick, Uber CEO, stated that “Right now, we’re particularly focused on building a great service for hundreds of millions of Indians. Tata’s leadership and experience will be crucial in helping us meet this important goal.”
According to the same statement, Uber has at the moment more than 150,000 drivers and a market share of around 35% solely in India.
Amit Jain, president of Uber India, stated that the strategic partnership with Tata Fund could take different shapes in the long run and that partnerships with other group companies are also being explored at the moment. Tata Opportunities Fund is planning to raise an estimate $700 million more in 2016 after utilizing its current $600 million by March according to its managing partner, Sinha. It has invested up to present in companies like Ginger Hotels, Tata Sky, Shriram Properties Pvt., Tata Projects Ltd. and TVS Logistics Services Ltd., and we can add the lucky Uber to its list.
By Gabriela Florea