BENGALURU: On demand transportation app Ola has raised $500 million led by Baillie Gifford, FalconBSE 2.69 % Edge Capital, Tiger Global, SoftBank Group, DST Global and China’s biggest taxi aggregator Didi Kuaidi.

Commenting on the funding, Bhavish Aggarwal, cofounder and CEO, Ola said, ..we are excited about bringing onboard partners who can help us get there faster.”

The investment will be used to fuel supply initiatives, build supply capacity and to go deeper into existing markets.

Ola competes with San Francisco based Uber in India. Last month, ET reported that the gap between these two largest ride hailing platforms is slowly shrinking, with both continuing to burn millions of dollars as they eye leadership position on the Indian roads.

Ola has closed over $1.3 billion of funding, of which about $1.2 billion has been raised over the past year. San Francisco based Uber in July announced that over nine months it would invest $1 billion (about Rs 6,400 crore) in the country, its largest market outside the United States.

Bengaluru based Ola is expected to cross annual gross revenue run rate of $1 billion by the end of the year, boosted in part by the $200-million acquisition of rival TaxiForSure, whose revenues have doubled since the deal closed in March this year.