Ola Will Raise $2 Bn At A Valuation Of $6 Billion; Beats Oyo To Become India’s 2nd Biggest Startup
As per reports, this fresh round of funding will be used for EV, FoodPanda, and International expansion.
Made in India on-demand taxi app Ola has surpassed all expectation, and have set a new standard for Indian startups.
As per reports coming in, Ola will soon raise $2 billion, or Rs 14,000 crore at a mindboggling valuation of $6 billion or Rs 42,000 crore.
This makes Ola as India’s second largest startup, beating Oyo Rooms, and only behind Paytm.
Ola’s $2 Billion VC Push
As per an exclusive report by YourStory, it has been revealed that Bhavish Aggarwal led Ola Cabs is all set to infuse $2 billion as VC funds under their Series J round of funding.
SThis round of funding has already started, as their existing investor Steadview Capital has infused $75 million, as part of the larger $2 billion funding.
As per regulatory papers, Steadview Capital now owns 2.61% in Ola, as they received 245,082 preference shares at a subscription price of Rs 21,250.
Where Will These Funds Go?
Sources informed YourStory that this new round of funding will be used to procure more electric vehicles, expand internationally, and focus on making their food delivery app Foodpanda even more robust.
The source said, “The larger $2 billion funding that we are raising will be deployed towards building the reach of electric vehicles, expanding and growing Foodpanda, and bringing in a stronger focus on international markets,”
Ola has already expanded into the UK, and now, more international expansion is expected.
There was no name mentioned about the source.
Ola’s Big Electric Push
Last year, we had reported that Ola plans to invest heavily into their electric vehicles plan, code-names as Misson Electric.
They have already partnered with Mahindra to buy 10,000 electric vehicles, and now, the process will gain momentum.
In March last year, Ola had kickstarted electric vehicle plan in Nagpur, as they installed 100+ chargers, and asked drivers to use electric vehicles. More than 200 electric vehicles were given to drivers.
But the plan failed, as drivers refused to cooperate, and returned their electric vehicles citing various reasons.
Now, with fresh funding, it is expected that their Mission Electric will take wings.
Ola Becomes India’s 2nd Largest Startup
With this fresh valuation of $6 billion, on the backdrop of receiving $2 billion VC funding, Ola has now become India’s 2nd largest startup.
Oyo Rooms was #2 biggest startup in terms of valuation till now, while Ola was at #3 – The positions have now been reversed.
Byju’s remain India’s 4th largest startup at a valuation of $4 billion.
Ola is confident of turning profitable soon, as the unnamed source said, “We are marching towards profitability in that sector and will soon become profitable in India.”
Last year, Ola had raised $1.1 billion from Softbank and Tencent, and had claimed that they in the process of raising $1 billion more.
We will keep you updated, as more details come in.