14 April 2017, India:
One of India’s ride-hailing company Ola has raised Rs. 1,675 crore in fresh funding from its existing investor SoftBank, as per filings made to The Registrar of Companies.
“While the Softbank money is in, the company is talking to new investors to raise more capital. These investors may come in at a higher valuation,” a person familiar with the developments told ToI.
Post the funding, SoftBank now owns the majority of the shares in Ola. According to estimates made by VCCircle last year, SoftBank held a 22.5% stake in Ola, followed by Tiger Global (20.5%). As per the report by Livemint, In this round, the valuation of Ola, which has so far raised nearly $1.5 billion in cash, will slide to about $3 billion on a pre-money basis, the people said. Pre-money refers to the valuation excluding the current round’s cash infusion. Ola’s post-money valuation will be determined by the exact amount of capital it finally attracts
Earlier this week, e-commerce marketplace Flipkart raised $1.4 billion from Tencent, eBay and Microsoft in a down round. Flipkart’s valuation fell to $11.6 billion from $15 billion on a post-money basis. (Image- Ola Cabs)