Ola Financials Servicesget funding worth crores in the maiden round.
What is the story behind the funding in this pandemic situation?
Falcon Edge and Matrix Partners have stepped forward to give funding to Ola. It is now a marketing strategy for Ola to work on financial services. Both in global and local markets, Ola is not getting enough positive responses. The product features are complicated. The distribution of the resource is uneven and people don’t have enough faith in the service. But now, the Covid-19 scenario will not let Ola perform good business. They are going into losses every day. That is why, to restructure the company in a new fashion, it is important to generate revenue from other sources. The financial service is one of them.
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Why Ola Financials Services require funding?
The raid-hailing business of Ola is in a crisis due to the lockdown situation in India. The cars are parked and the drivers are either unpaid or fired. Within consecutive 2 months, the services have reduced below 95%. Hence to make earning in another way, Ola is planning to step ahead with its financial service.
It wants to give a tough competition to the already existing mobile wallets like Google Pay and Paytm. To promote social distancing, people are now more preferring online payments.
What is Ola Estimating to do with this Funding?
The raid-hailing business will continue as usual. Ola Financials Services will now try to win the market by giving the best features to the consumers through the financial service. Such innovative features will attract more consumers to use Ola Money and not any other mobile wallet. Digital payment is the next big thing in India after the Corona crisis ends. Ola wants to take advantage of this situation and fight the battle with application development.
What are the Present Financial Services under Ola?
Till now Ola was offering financial services like short-term credits, mobile wallets, and bill payments. But it was not getting enough response since the market is already grabbed by some well-known companies. With the acquired funding of Rs205 crore, Ola will now try to focus on improving the financial service to attract more and more consumers.
This last in November, Ola had already decided to separate the financial service from ANI technology. Ola money now wants to develop as a separate distinct entity. The ride-hailing service should not put any effect on the financial service. Thus Ola is making an all-round effort to win the market. It is already in competition with Uber. Now it wants to compete regarding digital payments.
People will take time to accept the financial service of Ola but still, it is expected to generate much revenue within the next two years. It will heal the damages partially caused by Ola due to the inaccessibility of the ride-hailing business. Maybe the workers will no longer be appointed but Ola itself regenerate its lost revenue due to pandemic. Once the situation in India becomes normal, the workers will again be hired. The rival company Uber has also fired a lot of employees but they have not yet planned to regenerate the business structure.