Ola Cabs, a popular transportation network company is raising more money from the new and existing investors as the app enters into a new market and moves towards profitability.
Ola, which is the rival to the popular car service Uber in India, has acquired $50M at a valuation of around $4.3 million from two Chinese investors. Out of which, one is Sailing Capital, a Hong-Kong based private equity firm and the China-Eurasian Economic Cooperation Fund (CEECF).
The investment has been made as in presence of British Virgin Islands bodies of the two Chinese funds – Auto Fortune Ltd and Odyssey Bravery Ltd displays regulatory documents with a registrar of companies and accessed by Paper.vc.
Based on the company’s RoC filing provided by Paper.vc, a business intelligence platform, both the firms will hold a combined stake of 1% in Ola. In October 2017, Ola has acquired fresh funds of $1.1 billion from Tencent and returning investor SoftBank Group. Ola also stated that it has planned to raise an extra $1 billion from various other investors which means the firm will totally raise funds of around $2.1 billion.
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As per a report, Ola was bounded toward a post-money valuation of $7 billion as soon as the $2.1 billion raise was completed. Hence, the funding from the two Chinese firms it close to the funding goal, the latest valuation of $4.3, however, it is still lower than the proposed amount.
Before few days, Singapore-based Temasek had purchased secondary shares from former Ola employees, which are assumed to be worth of $30 million. Before this sale, the shares of founders, Bhavish Aggarwal and Ankit Bhati’s stake in the company is assumed to have increased. It is also anticipated that the Bhavish is presently stuck in the boardroom battle with the largest investor, SoftBank.
Ola requires a lot of money in order to start its operations in India as well as abroad. Apart from ride-hailing, Ola has also joined the race of food delivery at the end of 2017 by buying Foodpanda’s India’s operations to compete with Swingy, Zomato and UberEats. It is a very tough decision, as Indian food delivery service is highly dominated by other players. Particularly since Ola has earlier launched its food delivery service which was closed in less than one year.
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Just after few months of purchasing Foodpanda, Ola declared the purchase of public transportation service Ridlr. Apart from India, Ola is the main purpose is to start its operations in different countries. As declared today, Ola is going to start its services in New Zealand, after launching its services in the United Kingdom and Australia this year.