Ola raises ₹520.79 cr more; second among Indian unicorns

Our Bureau Bengaluru | Updated on January 10, 2019 Published on January 10, 2019

Cab hailing app Ola has received Series J funding round of ₹520.79 crore ($74.28 million) from its existing investor Steadview Capital at a pre-money valuation of $6 billion.

With this round, Ola has overtaken hospitality start-up OYO which was valued at $5 billion after it raised $800 million funding last year.

As per the pecking order, Paytm leads the pack with $10 billion valuation, followed by Ola and Oyo. Flipkart led the unicorns until it was acquired by Walmart.

This funding round is a part of Ola’s plans to raise a total of $2.1 billion, which the company announced in October 2017, when it announced its largest fund raise to date, of $1.1 billion led by Chinese internet behemoth Tencent Holdings Ltd with participation from SoftBank and new US-based financial investors. By the end of December 2017, Ola had closed $1.2 billion adding two more smaller rounds of financing. More recently, in September last year, Ola raised $50 million from Hong Kong-based Sailing Capital and the China-Eurasian Economic Cooperation Fund at an estimated valuation of $4.3 billion

According to regulatory filings accessed by data intelligence platform paper.vc, Steadview Capital bought 245,082 preference shares having a face value of ₹10, allotted at a subscription price of ₹21,250 per share, including a premium of ₹21,240 per share.

Ola has been trying to raise a series of small funding rounds from multiple investors to keep SoftBank at bay. SoftBank — which has about 26 per cent stake in Ola — had earlier attempted to forge a merger between Ola and arch-rival Uber, in which it is also an investor. This did not go down too well with Ola founder Bhavish Aggarwal.

Of late, Ola has been growing its international business at a rapid pace to improve its valuation before it goes in for an IPO, which analysts and industry watchers say, is imminent in the next three years.

Published on January 10, 2019
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