Ola, an India-based ride-sharing and food delivery service backed by corporates Tencent, SoftBank and Didi Chuxing, has raised more than Rs5.2bn ($74m) in funding from asset management firm Steadview Capital, VCCircle reported yesterday.
Founded as Olacabs in 2010, Ola operates an on-demand ride hailing and food delivery service that covers India, Australia, New Zealand and the UK.
The investment reportedly valued Ola at approximately $5.7bn. Although it has not disclosed what it intends to do with the cash, the company expanded overseas in 2018 and acquired the Indian business of food delivery platform Foodpanda in September.
Ola is in the process of raising $1bn from investors including internet and media conglomerate Naspers and Singaporean state-owned investment firm Temasek, and it appears likely Steadview’s investment will form part of that round.
The round features new investors and is reportedly a way for Ola’s founders to maintain control and fend off a potential merger with competitor Uber, as internet and telecommunications conglomerate SoftBank owns a large minority stake in both companies.
Ola has raised close to $2.5bn in funding to date, most recently securing $2m from scooter vendor Eternal Yield International last month.
Sailing Capital and China-Eurasian Economic Cooperation Fund supplied $50m for the $1bn round in September 2018. Ola had previously raised $1.1bn in a 2017 round led by internet group Tencent that included SoftBank, RNT Capital Advisors, Falcon Edge Capital and Tekne Capital Management.
Steadview last invested in Ola in April 2015, as part of a $400m series E round led by DST Global and also backed by SoftBank, Falcon Edge, Tiger Global, Accel and Singapore’s sovereign wealth fund, GIC.
SoftBank returned in November the same year to participate in a $500m round that also attracted ride hailing service Didi Chuxing, Baillie Gifford, Tiger Global, Falcon Edge and DST Global, adding to a $210m investment by SoftBank in 2014.
Ola’s shareholders also include Matrix Partners, Sequoia Capital, JS Capital, ABG Capital, Parkwood Bespin, Fii Ltr Focus Fund and Vanguard Group.
