The homegrown cab hailing firm, Ola is again in news. The Bengaluru-based firm is in talks with Tencent, the Chinese internet conglomerate to raise next round of funding, according to the media reports. If everything goes well, it could result in an investment of $400 million.
According to the media reports, “Tencent executives were in Bangalore last week and they met the Ola management team to discuss the transaction.”
Founded by Bhavish Aggarwal and Ankit Bhati in 2010, Ola is backed by marquee investors including SoftBank, Tiger Global and Matrix Partners. In June 2017, Ola had raised about $50 million (Rs 322 crore) from New York-based hedge fund Tekne Capital Management LLC, as part of the company’s ongoing funding round. Prior to that cab hailing app had raised Rs 670 crore in a fresh round of funding from Ratan Tata’s venture fund RNT Capital Advisers LLP and US hedge fund Falcon Edge Capital LP.
Since November 2016, Ola has raised nearly $400 million. If the investment from Tencent works, Ola will reach over $800 million in fresh total funding. The additional capital will push Ola’s valuation to over $4 billion.
If reports to be believed, Ola has also held talks with Microsoft, the global tech giant to participate in the current round, but those talks have not yet advanced.
This news came just after, Tencent, a leading provider of internet value added services in China invested an undisclosed amount in BYJU’S, Indian edtech company.
Tencent which has earlier backed homegrown e-commerce firm, Flipkart will become one of the most influential investors in the Indian market with the total investment of over $ 1 billion, if this deal goes successfully.
Ola recently shared the tremendous growth witnessed by its shared mobility offering Ola Share. Registering a 500% growth in last one year; Delhi, Bengaluru, Mumbai, Hyderabad and Kolkata have emerged as the top 5 cities for Ola Share.The funding comes at a time when Ola’s arch rival, Uber has been facing a host of issues. Now we have to see this will this round of funding will help Ola to stave off the challenge from it’s competitor, Uber.
The funding comes at a time when Ola’s arch rival, Uber has been facing a host of issues. Now we have to see this will this round of funding will help Ola to stave off the challenge from its competitor, Uber.
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