Co-investing with Tiger Global Management, Matrix made the acquisition in the second institutional round of funding for Olacabs, which has said it will use the new capital to expand its operations in new markets and grow its technology and analytics expertise.

Founded in 2011, Olacabs was India’s first cab company to develop iPhone and Android booking and tracking apps for customers and navigation and fare calculation software for drivers. The company currently manages over 6,500 vehicles across five Indian cities.

“Combined with the rich global expertise of our existing investor Tiger Global, this partnership gives us the support and resources to grow rapidly,” said Bhavish Aggarwal, co–founder and CEO of Olacabs: “We will continue to create substantial value for our customers in terms of the Ola experience and for our drivers/operators by helping them buy their own cars and improving business for them, thereby nurturing micro-entrepreneurship.”

Matrix managing director Avnish Bajaj added: “Ola is leveraging technology to revolutionise ground transportation and is aggregating the highly fragmented cab and car rental market – one of the large travel verticals yet to be organised in India. It is our privilege to be associated with Bhavish Aggarwal and Ankit Bhati, the co-founders of Olacabs, who have built a scalable platform for online cab bookings.”

IndusLaw’s team advised and represented Olacabs in the series C investment by Matrix Partners India Holdings.

The deal was announced last Thursday.