Sachin Bansal Raises Ola’s Valuation to $5.7 Billion By Investing $21M In The Ride-hailing App

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Source: Zee News

Flipkart co-founder Sachin Bansal has invested Rs 150 crore (approx $21 million) in SoftBank-backed ride hailing firm Ola, according to documents filed with the registrar of companies (RoC) which were sourced from the financial data platform Paper.vc.

Source: Wikipedia

Bansal purchased 70,588 ‘Series J’ preference shares at a value of Rs 21,250 per share, the documents revealed. The investment will value Ola at $5.7 billion.

It was reported on 11th of January that Steadview Capital had invested over Rs 520 crore (about $74 million) in Ola. This is a part of the Bengaluru-based company’s ongoing financing round valuing it between $5.5- $6 billion, the highest it has commanded till date.

The investment is said to be part of a larger $100 million investment that Bansal has committed to Ola, which was first reported around 11th of October 2018 by business newspapers.

Bansal, made close to $1 billion after selling his stake in Flipkart to global retail giant Walmart last year, when it acquired 77% stake in the online marketplace for $16 billion.

Bansal and Ola’s Bhavish Aggarwal have grown close over the past few years, and had come together publicly to voice concerns over how domestic startups lacked a level playing field against their deep-pocketed global rivals. “We need your capital, not your companies,” Bansal, addressing global companies, had told an audience in December 2016.

Source: Biogtown

The two even came together to launch an industry grouping called IndiaTech.org to represent local Internet companies. Bansal however stepped down as a founding member of the group after Walmart acquired majority stake in Flipkart, while Ola continues to be a member of IndiaTech.org.

Source: Linkedin

Bansal’s investment in Ola comes at a time when the company has been on the hunt for new backers, to help scuttle a battle for power with its largest shareholder SoftBank. The company has brought onboard Temasek, Steadview Capital, and even from a Chinese state fund that’s associated with country’s controversial Belt and Road Project.

Source: Inventiva

This is as per a report in the Economic Times.

 



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