Updated: January 15, 2019 1:36:20 am
Flipkart co-founder Sachin Bansal is understood to have picked up a stake worth $21 million (about Rs 150 crore) in ANI Technologies which owns ride-sharing platform Ola Cabs.
The latest fundraise by Ola Cabs — Series J — values the business at close to $5.5-$6 billion, industry watchers say. It’s possible Bansal may become a bigger stakeholder in Ola investing more over the year, they said. FE could not independently ascertain the value of Bansal’s expected investment. ANI Technologies had recently raised $74 million from Hong Kong-based Steadview Capital. The firm is expected to allot Bansal 70,588 fully and compulsorily cumulative preference shares with a face value of Rs 10 at a subscription price of Rs 21,250. Bansal, who had sold his 5.5 per cent stake in Flipkart to Walmart last year for an estimated $800 million-$1 billion, is believed to be setting up his own fund worth $1 billion, according to media reports.
In December, Bansal had registered his holding company BAC Acquisitions which he is likely to use for making investments and starting new businesses. Former investment banker Ankit Agarwal is also a director of the firm.
Earlier, Ola had raised $1.1 billion from Tencent holdings and existing investor Japan’s Softbank.
According to reports, SoftBank already owns over 26 per cent in Ola and it is unclear whether it will invest more. Ola is on an expansion spree in the overseas market. After having launched its services in Australia in February 2018 and the UK in August 2018, the ride-sharing platform has entered New Zealand. In Australia, it operates in seven major cities and has over 50,000 registered drivers. It serves 125 million users in India, Australia and the UK.
In December 2018, the firm invested $100 million in scooter-sharing company Vogo, as part of which it will boost Vogo’s supply by investing in 100,000 scooters on the Vogo platform, worth $100 million. Vogo is a point-to-point dockless scooter sharing company, currently present in Bengaluru and Hyderabad, and claims to have served over 20 million km on its platform. Vogo’s offerings will also be available for Ola’s over 150 million customer base, directly from the Ola app soon, the company said. This infusion will give Vogo a strategic supply advantage without having to incur significant capital expenditure, Ola said.
A year ago, it acquired food delivery company Foodpanda India from its German parent. Foodpanda has recently expanded its delivery network to 100 cities across the country and claims to process over 300,000 orders a day from over 60,000 restaurant partners across the country.
With FE inputs
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.