Ola Raises INR 650 Cr from Flipkart Co-founder Sachin Bansal
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Flipkart’s Co-founder Sachin Bansal has invested INR 650 crore or $ 90mn in India’s homegrown ride-hailing platform. The funding is a part of Ola’s series J funding.
According to an Economic Times report, Bansal has signed roughly about 10 per cent of his personal wealth to Ola. It has been reported that this one is the largest funding made by an investor in his individual capacity.
Bansal feels Ola is one of India’s most promising consumer businesses and it is creating deep impact and lasting value for the ecosystem.
“On one hand, they have emerged as a global force in the mobility space and on the other, they continue to build deeper for various needs of a billion Indians through their platform, becoming a trusted household name today,” Bansal said in a statement while adding that, “I have known Bhavish as an entrepreneur and as a friend over these years and I have great respect for what he and the team at Ola have built in just 8 years! I am personally thrilled to be part of the Ola journey and I look forward to contributing to their success.”
While on the other Bhavish Aggarwal, Co-founder and CEO, Ola, in a statement, said the company is extremely thrilled to have Bansal on board as an investor
“Sachin is an icon of entrepreneurship and his experience of building one of India’s most respected businesses ground up, is unparalleled. His investment is a huge encouragement for all of us at Ola and our mission to serve a billion people. I personally look forward to learning from Sachin’s journey, his mentorship and guidance, as we look to build one of the most impactful global businesses out of India,” he added.
The Funding Spree
The series is part of Ola attempt to raise $1 billion. Last October, the cab aggregator announced a fund-raise of $1.1 billion from Chinese investor Tencent Holdings and existing investor SoftBank Group. It also said the company was keen to raise another $1 billion.
According to news reports from last December, SoftBank was planning to invest $1 billion in Ola, which would be used by the latter to meet its expansion needs for food delivery venture Food Panda and some areas of e-pharmacy as well.
Having said that, rumour has it that Agarwal was too keen to take the money as it would increase SoftBank’s stake from 26 per cent. However, he might consider raising a smaller amount instead.
The Indian unicorn is locking horns with its largest competitor Uber not just in India but also in the international market. Last year in January, Ola expanded to its operations to Australia. It further expanded to the United Kingdom and New Zealand.
Additionally, Ola is also betting high on its food tech business where it does not just compete with UberEats but players like Swiggy and Zomato.
To top it, reports also suggest the Ola is also looking to acquire 26 per cent stake in carpooling app sRide, which will help the former expand its offering in Indian urban mobility space.