SoftBank-backed Ola has raised Rs 670 crore ($104.4 million) in fresh funding from investors including UC-RNT Fund, a venture between the University of California and Ratan Tata and hedge fund Falcon Edge.
While UC-RNT Fund has pumped in Rs 267.99 crore, another Rs 402 crore has been infused by Falcon Edge (FO Mauritius I Ltd), as per a regulatory filing by Ola parent ANI Technologies.
ET reported earlier this month that Ola is in advanced talks to raise $100 million from Ratan Tata’s RNT Capital and Falcon Edge in a deal which could move up its valuation to $3.5 billion.
The Bengaluru-based firm had raised about $250 million from Japanese telecom and Internet major SoftBank in November, albeit at a lower valuation of $3 billion, down from its previous valuation of $5 billion in November 2015, when the company had raised $500 million funding.
Ola, which is locked in an intense market leadership battle with rival Uber, has raised an overall investment of over $1.5 billion from investors, including SoftBank Group, Tiger Global, Matrix Partners, Steadview Capital, Sequoia India, Accel Partners US and Falcon Edge till date.
Industry estimates place the market share for Ola, led by founder Bhavish Aggarwal, at around 65% with Uber holding the second slot in the taxi aggregation business.
According to analysts and employees at Ola, the company clocked about 6 million weekly rides on an average between September and December 2016, across all its offerings—cabs, auto rickshaws and shuttle buses.
That said, Ola continues to bleed on account of heavy advertising and promotional expenses and high employee cost. The company posted a consolidated loss of over Rs 2,311 crore – about Rs 6 crore a day – for the year ended March 2016.
Ola however did see its consolidated revenues grow seven times to Rs 758.23 crore for the year ended March 2016, as compared to Rs 103.77 crore in the previous fiscal. This includes revenue of subsidiaries such as leasing unit Ola Fleet Technologies and TaxiForSure parent Serendipity Infolabs.
Ola, which has a presence in 110 Indian cities compared to Uber’s operations in 29, has been aggressively expanding its portfolio of services. The company’s plan to work closely with the government and introduce electric vehicles across top cities in the country in the coming months is expected to boost the Indian company’s prospects.
SOURCE – BGR.IN
INPUTS BY – PRESS TRUST OF INDIA