Tencent (TCTZF) is said to be in talks to invest $400 million in India's biggest ride-hailing app, Ola, the Economic Times reported.

An investment from the Chinese social media giant would send Ola's valuation up to $4 billion and give it more cash to compete with rival service Uber in India. Insiders said Tencent has spoken with Microsoft Corp (MSFT) - Get Report about a potential investment after the two companies joined with eBay (EBAY) - Get Report for a $1.4 billion funding round in e-commerce retailer Flipkart in April.

Ola has raised about $1.7 billion to date, including investments from Japan's Softbank (SFTBF) and U.S. funds Falcon Edge and Tekne Capital Management.

Tencent stock traded up at yesterday's close.

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