Bhavish Aggarwal and Ankit Bhati, the co-founders of the ride-hailing giant Ola, have added hundreds of crores to their net worth, recently after they received 2,56,038 equity shares at a nominal price of ₹10 per share, according to regulatory filings.
The shares were allotted at a nominal price but as per the company’s last valuation, the entire transfer is worth an estimated ₹544 crores. Bhavish received 1,76,646 equity shares worth around ₹375.4 crores while Ankit received 79,392 shares worth ₹168.7 crores.
Ola was valued at $6.2 billion or around ₹44,000 crores during its fundraiser of ₹2,244 crores from South Korean automotive manufacturer Hyundai and Kia Motors in 2019. The value of each share was priced ₹21,250 at the time of investment.
Entrackr’s team has factored the same share value to arrive at the value of fresh stocks allotted to both Ankit Bhati and Bhavish Aggarwal.
As of May, Bhavish held a 7.29% stake while Ankit held a 2.7% stake in Ola. However, following the funding round in December 2019, they diluted their stakes. Now with this transaction, they have strengthened their holdings in the company again. The fresh allotment of shares seems to be a part of an agreement with the company’s investors which beholds to incentivize the founders subject to completion of a defined threshold.
However, the issuing of fresh shares to founders is not new in Ola’s history. Earlier in 2015, were rewarded with equity shares twice. The fresh issues may be targeted to keep the founders motivated.
Bhavish and Ankit also owned 25.17% and 11.52% stake in Ola Financials at the end of FY19. However, Ankit Bhati is not a shareholder in Ola Electric. To be precise, there are three separate entities, ANI Technologies (owner of Ola Cabs), Ola Financial Services (provides postpaid loans), and Ola Electric.
Ola Electric was founded in 2017 and Aggarwal holds a 92.5% stake of the company. In just a few months of its incorporation, the firm turned unicorn. As per some media reports, the exclusion of Ankit Bhati from Ola Electric created a rift between the two founders. According to a report by The Morning Context, the way Bhavish sidelined Ankit from Ola Electric raised concerns over corporate governance.
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