Ola's electric mobility unit raises $56 million in first funding round

Ola Electric Mobility Pvt Ltd, a company backed by Indian ride-hailing platform Ola, said on Friday it raised 4 billion rupees ($56.4 million) in a funding round led by several of Ola`s early investors including Tiger Global and Matrix India.

This is the first round of investment for Ola Electric, which currently runs several pilots to deploy electric vehicles and charging solutions.

The announcement comes a day after India`s cabinet approved a scheme to spend $1.4 billion to subsidise sales of electric and hybrid vehicles as part of efforts to curb pollution and reduce dependency on fossil fuels.

Ola last year said it planned to bring 1 million electric vehicles to Indian roads in a few years.