Uber’s main rival in India, Ola, has raised $1.1bn in a funding round led by Tencent, bringing the company’s valuation to around $7bn. The round also included existing investor SoftBank, as well as other new US-based financial investors.

The company says it is in advanced talks with other investors that would see an additional $1bn added to the round, closing the total amount raised at over $2bn.

Ola will use the financing to make strategic investments in supply, technology, and innovations for India’s transport needs. In addition, it will invest in AI and machine learning capabilities, while also endeavouring to provide transportation to more people in across the country.

“We are thrilled to have Tencent Holdings join us as new partners in our mission to build mobility for a billion Indians,” said Bhavish Aggarwal, co-founder and CEO of Ola. “The transportation and mobility industries are seeing huge changes globally. Our ambition is to build a globally competitive and futuristic transportation system in India that will support and accelerate a nation on the move.”

The ride hailing company is available in 110 cities across India, providing services such as auto-rickshaws, bikes, and vehicles equipped with connected car platform Ola Pay.

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