Ola, the Bengaluru-based cab-hailing platform started by Bhavish Aggarwal has raised $50 million in a fresh funding round led by two investors from China. The funding was raised at a valuation of $4.3 billion. The investors include China-Eurasian Economic Cooperation and Hong-Kong based Sailing Capital.
Media reports suggest that this fundraising will be used to escalate Ola’s move to raise fresh funds of at least $1 billion. Paper.vc, a business intelligence platform, sourced the RoC filing of the company which shows that China-Eurasian Economic Cooperation and Sailing Capital shall hold a combined stake of over one per cent in the firm.
In October 2017, the company raised funds of $1.1 billion at a valuation of $3.5 billion from Tencent Holdings and Softbank. Earlier this month, former Ola employees had sold shares worth $30 million to Singapore-based Temasek, post which, the stake of Bhavish Aggarwal and Ankit Bhatia (founders of Ola) increased in the company. There are speculations around that Bhavish is in a boardroom battle with Softbank, the largest investor in Ola.
Last year, Bhavish and Ankit added a clause to prevent Japan’s SoftBank which prevents the investment firm to buy additional shares without approval from the founders and the board. Ola is aggressively expanding its operations globally and fighting hard to compete with San Fransico based Uber. At the time, this fresh capital can help the firm in several ways.
To remain at the top of the ride-hailing game and compete with rivals like Uber and Didi Chuxing, Ola has continued to raise funds. Since the company was founded, it has raised a total of $2.5 billion in funding which makes it one of the unicorns in the India startup ecosystem.
The company acquired Foodpanda, the online food delivery platform and is actively pushing it to compete with Uber Eats. With all the speculations and alleged boardroom battle between Ola and Softbank, it will be quite exciting to follow the next steps of the Bengaluru-based ride-hailing firm.