Japanese investor SoftBank has pumped in about Rs 1,675 crore in fresh funding in homegrown Uber-rival Ola. The fresh funding will give the Bangalore-based online transportation network firm a more muscle to give stiff competition to Uber.
According to the filings recorded with the Registrar of Companies (RoC), SoftBank subsidiary SIMI Pacific Pte picked 12,97,945 shares valued at Rs 10 at a premium of Rs 12,895 in Ola’s parent company ANI Technologies.
The allotment of shares was done in November last year, showed the RoC.
The latest funding, however, is believed to have come at a lower valuation.
According to sources, the move comes at a time when Softbank is on verge of selling Snapdeal to larger rival Flipkart. Notably, Softbank is largest investor and shareholder of Snapdeal.
Ola last raised $330 million in a funding round which was also led by Softbank, in February this year. So far Ola has raised USD 1.5 billion from nine different rounds excluding this one.
Interestingly, Softbank is repeatedly making investment in Ola in spite of the fact that it has registered a whopping $350 million in losses from its investments in two of the most famous startups in India — Snapdeal and Ola — for the nine months period that ended December 31 last year, said a report data.
Earlier this week, India’s largest e-commerce firm Flipkart raised USD 1.4 billion from Tencent, eBay and Microsoft in a round that saw its valuation fall from USD 15 billion to USD 11.6 billion now.