India’s homegrown taxi aggregator – Ola, has finally got fresh investment of $350 Million from new and existing investors. But the valuation of the company was brought down to $3.5 Billion from the earlier $5 Billion.
The latest investment rounds were lead by existing investors Softbank, Tiger Global, Sequoia Capital and Matrix Partners. Despite of witnessing a huge loss in the Indian Market, Soft Bank continues their investment in Ola. The latest funding round is a much-needed boost for the firm to go head on with the competition. Valuated at 30% lower, SoftBank marked down its investment in the cab aggregator.
The reports say that Ola was looking to raise the funds from past six months. The last time Ola raised $ 500 million at a valuation of about USD 5 billion in November 2015. Ola is owned by ANI Technologies Pvt Ltd, since then it has received $1.23 Billion in funding from their investors.
Coming to balance sheet of the company, Ola recorded a loss of Rs 755 crore against revenues of Rs 418 crore in the year 2016.
Cab aggregators are undergoing operational problems across India in recent times. The Driver partners from Delhi and Bangalore are protesting for better incentives and fares. On the other side, the Karnataka government has banned the ride sharing services in their state. Currently the only way to make the business profitable is sit for discussion with rival Uber and get rid of predatory pricing and constantly grow the market with co operation. Last year there were big rumors about Ola getting merged with Uber.
Also Read about Reliance Jio Cabs launch
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