India's cab hailing startup Ola seeks further investment to take on rivals like Uber
India's version of Uber, Ola, is all set to raise another $100 million funding after successfully raising $250 million from its largest shareholder, Japan’s SoftBank Group Corp.
Ola, India's homegrown cab hailing company
In a regulatory filing made to the Corporate Affairs Ministry under the Comapnies Act, the company said: "The board of directors of the company at their meeting held on 16 March 2017 proposed the infusion of additional funds up to $100 million, which is approximately Rs 670,00,07,046 by issuing 4,95,526 Series 1 preference shares of face value of Rs 10, at a price per subscription share equivalent to Rs 13,521 to its existing holders of equity shares on rights basis."
The regulatory filing also indicates that Ola's evaluation has seen a marginal increase of 5% in the latest funding round, when compared to the previously issued Softbank shares (at Rs 12,895 per share) in November.
ANI Technologies, which operates Ola, reported Rs 51.05 crore revenue from operations and other income in FY 2013-14. This was a growth of over 200% from Rs 16.4 crore in the preceding financial year. Losses in the period stood at Rs 34.22 crore compared to the loss of Rs 22.8 crore in the previous financial year.
To capture a bigger market share and rise above its rival Uber, which is going to be an uphill task, the company has so far raised more than $1.5 billion in funding in nine rounds, from more than 20 investors, including Sequoia Capital, Falcon Capital, DST Global and Accel Partners, among others.
Ola remains as the third most valuable startup in India after Flipkart and Paytm.