India-based ride-hailing service Ola has obtained $330m in funding from telecoms and internet group SoftBank and two other existing, unnamed investors, Business Standard reported today.
The deal valued Ola at $3.5bn, a 30% drop from the previous funding round which closed in 2015 at $557m with a valuation of $5bn. SoftBank holds a 22.5% stake in the company.
Ola, established in 2011 as Olacabs, operates a ride-sharing platform that enables users to book taxis, auto rickshaws, luxury vehicles and shuttle buses in 102 cities across India.
The funding will help Ola fend off increasing competition from US-based rival Uber, which has been stepping up its efforts in the Indian market since selling its China subsidiary to local competitor Didi Chuxing.
In November, news emerged that Ola was trying to raise up to $600m in a series G round led by SoftBank and it is not clear if the $330m revealed today are a first tranche or if the firm was unable to reach its target.
The company previously raised approximately $1.25bn. SoftBank, Didi Chuxing, Baillie Gifford, Falcon Edge Capital, Tiger Global Management, DST Global, Steadview Capital, ABG Capital, Fii Ltr Focus Fund, JS Capital, Parkwood Bespin and angel investor Daniel Neary supplied $500m in November 2015 before Vanguard Group added $57m a month later.
SoftBank also injected $210m in 2014 at a $1bn valuation and a $400m series E round in April 2015, led by DST Global and with participation from Falcon Edge, Tiger Global, Steadview, Accel Partners and GIC, the sovereign wealth fund of Singapore.
EDIT (April 14, 2017): SoftBank invested $250m through its SIMI Pacific subsidiary as part of the round, according to a regulatory filing.