Tata, Chairman Emeritus of Tata Sons, had previously invested in start-ups ranging from online retailer Snapdeal to Chinese phone maker Xiaomi. "Tata's strong inclination towards transportation as a segment and philosophy of creating widespread social impact through business creates a strong connection to this investment," the company cited in a statement.

Ola, which is backed by Japan's SoftBank, had in March bought TaxiForSure for USD 200 million in one of India's biggest e-commerce deals to take on US-based rival Uber.

"Ola, which is revolutionising transportation today and creating significant value for citizens and lasting social impact for driver-partners, will stand to benefit from Tata's endorsement and guidance going forward in a big way," it added.

Bhavish Aggarwal, CEO and Co-founder, Ola, said it was company's honour to have Tata onboard as an investor. "This is a huge endorsement from one of the most respected business leaders of our times and reflects Ola's commitment towards the future of mobility in India. We look forward to learning from Tata's experience that will help us build a world class organisation from India," he expressed.

Ola, founded in January 2011 by IIT Bombay alumni Aggarwal and Ankit Bhati, has operations in over a 100 cities across India with 1.5 lakh vehicles registered on its platform.

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