The country’s own car-hailing giants Ola Inc finally settled down with a fundraising of worth Rs. 2000 crores from its prime existing investor SoftBank Corporation. The Japanese telecom and internet major’s inside source made an announcement in which a fresh series of funding will be aggregated. The deal got finalised in presence of ANI Technologies Pvt. Ltd., which is the core firm of Ola Inc. The funding will be done in the next few days along with rest of the existing investors.
One of the prime sources reportedly stated that SoftBank is insisting on investing more funds thus committing onto more capital but Ola wants to control the dilution. Earlier, Soft Bank invested as much as 750 million USD in GrabTaxi, one of the prime rivals of Uber in SouthEast Asia. This time, its Ola’s turn as the firm is expecting to raise at least 500 million USD from its all the present investors and if possible, it may even raise up to $700 million.
In the recent, press meeting held with Soft Bank Group International, the higher officials clarified that it was all set to keep a keen focus on consolidating its position in the Indian market thus intensely backing it by finances. The firm is already investing two major companies, Ola Inc and Snap Deal. The onset fundraising will foresee Ola’s valuation remaining flat as previous terms, thus indicating the size being stagnant and not increasing dramatically.
The fundraising for Ola comes as favourable news for the company as it’s prime competitor Uber makes a strong hold over the market. Earlier, the firm’s valuation closed at 5 billion USD after it raised funds worth $500 million in November 2015-16. Till date, Ola Inc. has raised over 1.3 billion USD from its existing investors which include SoftBank Corp., Matrix Partners, Tiger Global, Sequoia India, Steadview Capital, Accel Partners, and Falcon Edge.