An investment arm of Tata Group said on Wednesday that it is planning to make a big investment in US-based taxi hailing company Uber. The investment by Tata Opportunities Fund (TOF)--a private equity fund advised by the group's Tata Capital--will become the second Indian firm to show interest in Uber.
However, the company did not disclose the volume of investment and the percentage of stake to be bought.
"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," TOF managing partner-advisory team India Padmanabh Sinha told PTI.
In March, Uber had reportedly said that it would get a funding of "well under" Rs 100 crore ($16 million) from Times Internet. Times Internet is a subsidiary of Bennett Coleman & Co, which publishes leading dailies The Times of India and The Economic Times.
"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.
Earlier in July, Uber had said that it was planning to invest $1 billion (Rs 6,400 crore) towards expanding its operations in India, its second largest market after the US. After launching its services in Bangalore in 2013, the US-based firm has seen a phenomenal growth in the past two years.
Uber, which is regarded as the world's second most valuable start-up, has come out with agressive plans for India in the past two months. Last month, the firm had announced to set up a "response and support centre" in Hyderabad, which will be its biggest investment outside the US.
Ola--Uber's main rival in India--which has operations in nearly 100 cities, is currently giving a tough competition to the American company.
Ola claims to have 80% of the market share after acquiring TaxiForSure in March this year. Interestingly, Ratan Tata--chairman emeritus of Tata Sons--has bought a stake in Ola.