MUMBAI: Car rental service provider Olacabs said it has raised 250 crore from a group of investors to expand their operations to newer markets.

Hong Kong-based equity hedge fund Steadview Capital and Silicon Valley based Sequoia Capital along with existing investors Matrix Partners India and Tiger Global Management has collectively pumped in 250 crore, Olacabs said in a statement.

The company will use the funds from this investment to expand their operations to newer markets as well as invest a sizable sum into the supply ecosystem to nurture micro-entrepreneurship in the driver stakeholder segment.

"We intend to be present in at least 20 cities by the end of this year. We are also deeply involved with the supply ecosystem by helping drivers become entrepreneurs and creating socio-economic empowerment for them. We are happy to announce that we are earmarking a sum of 100 crore towards nurturing this ecosystem in the next one year.

"Steadview and Sequoia are great partners to have on board, with both of them bringing deep understanding of consumer businesses," Olacabs co-Founder and CEO Bhavish Aggarwal said.

Olacabs has over 11,000 cabs on their platform and is present across nine cities.

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