Ola, renowned India’s ride-hailing startup has announced an investment of close to USD 100 million in the scooter start-up Vogo. The investment is a part of the deal that will let users access the two-wheeled devices. The finance will be used by the start-up Vogo that will help it include 1 lakh scooters to its fleet. This is a part of the fundraising round that also included Matrix partners India and Stellaris Venture Partners. With the alliance, Ola's existing customers will also be able to access Vogo's scooters with the company's mobile application only.
Ola and Vogo said in a press statement yesterday that this infusion will give Vogo a strategic supply advantage without having to incur significant capital expenditure. For those not in the know, Vogo offers dockless scooter sharing services in Bengaluru and Hyderabad. The start-up helps in the last mile connectivity. The Vogo scooters come with an IOT device that ensures that there is no need of human intervention.
The device lets the customer access the scooter's key via OTP and hence offers a richer and seamless experience. The tie-up aims at challenging the problems of traffic congestion and pollution while offering last mile connectivity solution to the customers. On the other hand, Ola is one of India’s biggest ride-sharing providers, with more than a million drivers.
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