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.

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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.