Uber India has received Rs. 1,767.46 crore in fresh capital from Netherlands-based entities Uber International Holding and Uber International, according to the company's RoC filings sourced from business intelligence platform paper.vc.
Uber India has received Rs. 1,767.46 crore in fresh capital from Netherlands-based entities Uber International Holding and Uber International, according to the company’s RoC filings sourced from business intelligence platform paper.vc.
The recent funding is significantly higher than the last capital infusion made a couple of years ago — the two entities had jointly injected a little over Rs. 40 crore in Uber India in 2017.
The fund infusion comes at a time when the US-based ride-hailing firm is looking at India to drive growth. Uber posted its largest-ever quarterly loss, a whopping $5.24 billion in the three months which ended June 2019. Losses remained elevated at $1.2 billion in Q3 2019.
At an event last month, Dara Khosrowshahi, CEO, Uber, said the company’s growth will be defined by markets like India Africa and the Middle-East in the next ten years.
“Profitability metric of our business here (India) is improving. We will continue to remain and invest here,” Khosrowshahi said while launching Uber’s public transport services in New Delhi, a first for the company in Asia.
The firm’s primary unit, Uber India Systems reported revenues of Rs. 522.41 crore in the year to March 2018 against revenues of Rs. 410.71 crore posted in the year-ago period. Profits increased marginally to Rs. 26.46 crore in FY18 compared to profits of Rs. 19 crore in FY17.
In India, Uber competes with Ola — the two jointly dominate the country’s ride-sharing space. Analysts at Morgan Stanley expect the market to be a leader in shared mobility by 2030. They estimate shared miles to reach 35% of all miles travelled in the country by 2030 which will further increase to 50% by 2040.
Uber’s food delivery business, however, seems to be struggling to gain a foothold amidst fierce competition from Swiggy and Zomato. Backed by deep-pocketed Naspers and Ant Financial respectively, the two companies jointly delivered about 96 million orders in FY18, according to analysts at Kotak Institutional Equities. Company executives at Uber had earlier said Uber Eats has a low offtake in the country.
Uber which was listed on the New York Stock Exchange earlier this year had indicated in its IPO (initial public offering) filing that it is spending heavily on incentives and promotions to drive growth in India as competitors Swiggy and Zomato are well-capitalised. The company had a disappointing IPO that valued it considerably lower than the anticipated $100 billion, according to media reports.