Cab Aggregator Ola Pursues Generate Additional $300 Million

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Key Highlights

Ola Cabs is targeting to generate an additional $300 million

Ola raised $300 million Hyundai Motor Co. and Kia Motors Corp.

Ola’s Electric Mobility arm had autonomously generated $58 million

OLA is one of India’s top tech star up application. Founded in December 2010, by the pair of IIT Bombay graduates, Bhavish Aggarwal, and Ankit Bhati.Bhavishis a former Microsoft employee, he was part of microsoft for almosttwo years after graduation.

Bangalore-based e-taxi platform Ola Cabs is targeting to generate an additional $300 million (INR 2,080 crore) as part of its underway funding round. The ANI Technologies-backed company is planning to generate a sum of $1 billion (INR 6,934 crore) in the Series J round, which is estimated to make its valuation to about $6 billion (INR 41,603 crore).

In March this year, Ola raised $300 million (INR 2,080 crore) from South Korea multinational automotive manufacturer Hyundai Motor Co. and South Korea’s second largest automobile manufacturer Kia Motors Corp. Early this year, Ola also generated $74 million (INR 513 crore) from its current investor Steadview Capital. According to documents filed Registrar of Companies (RoC), The company harvested 245,082 preference at a subscription price of $307 (INR 21,250) per preference share.

Based on the current filings, Ola’s latest investors, such as Flipkart’s Sachin Bansal, Hyundai Motors, and Kia Motors, are being assigned 1.16 million Series J cumulative compulsorily convertible preference shares, at a price of $307 (INR 21,250) per share. Prior to the allotment, SoftBank’s stake in Ola is presumed to drip to 23.3 per cent from the current 26 per cent. In meantime, the amalgamated stakes of Bhavish Aggarwal and Ankit Bhati are probably to heighten marginally to 10.88 per cent. Bhati and Agarwal, have generated near to Rs 100 crore through secondary share sales, as a section of the underway financing round.

Ola’s Electric Mobility arm had autonomously generated $58 million (INR 400 crore) from Matrix Partners India and Tiger Global, also alternative investors, a few months ago. With the investment, Ola Electric was aiming to work various pilots to deploy electric vehicles and charging solutions, which includes battery exchanging stations, electric-based two-wheeler, and three-wheeler services among others.

Ola wants to swoop into as much as 50 global cities by 2019, with the main target on elegant European and Gulf markets. Early this year, The firm’s world growth began with Australia, which followed its arrival in the United Kingdom and New Zealand. The upcoming destination is Amsterdam, Netherlands. The capital city is a key location for serving to the markets in Central, Northern and Eastern Europe and even North Africa.

According to its announcement, Ola is aiming to expand across the United Kingdom by the end of 2019. Ola’s approach in the UK is slightly different. It will not only provide commuters with the chance to book private hire vehicles (PHVs) but also black cabs. They are also aiming to provide other modes of transport, like Auto-rickshaw, on the same platform in the future. The company has already obtained a license in South Wales and Manchester.

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Shubham Mishra

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