Uber's India rival Ola looking to raise $600 million in fresh funding

India’s ride-hailing service Ola could be planning to raise more money soon as it eyes further expansion and also take on global giant Uber.

Ola is planning to raise $600 million by the end of the year, according to Bloomberg. The company is in talks with its existing investors such as SoftBank Group as well as some new investors for the funding.

India’s largest cab-hailing service will be using the money to counter competitive pressure from global giant Uber. The San Francisco-based company is aggressively expanding its cab platform in India. Uber, which recently sold its China's operations to local giant Didi and left the country, now sees India as its next major market. Interestingly, Didi is an existing investor in Ola as a part of its grand anti-Uber global alliance but it remains unclear whether it will invest in the future after its deal with Uber.

Ola plans to invest in attracting more drivers to its platform with vehicle leasing programs. The company currently has tie-ups with Indian giant M&M and German carmaker BMW for leasing and training programs for drivers.

India estimated to be $10 billion market for ride-hailing services. Though there are several local and international brands competing in the Indian market today, Ola and Uber are the two with dominant positions. Ola currently operates in over 100 cities in India, whereas Uber is present in fewer than 30 cities.