Ola raises $2 billion from Softbank, Tencent, other investors

Ola raises $2 billion from Softbank, Tencent, other investors”

Ola scored $2 billion in new funding from a group of investors including SoftBank Group Corp. and Tencent Holdings Ltd. A representative for Ola declined to comment on queries emailed by ET.

According to the publication, other investors include UC-RNT fund, a joint venture between Ratan Tata's RNT Associates and the University of California, and several U.S. institutional investors. The company was reported to have raised $330 million on a $3.5 billion valuation in February but Ola did not confirm the round.

The new funding to Ola is run by venture capitalist fund jointly run by industrialist Ratan Tata, the University of California's investment arm and USA institutional investors, the report said. Ola will have to deliver on certain goals the Japanese investor has set, drawing from its knowledge of the ride-hailing business with investments in Didi Chuxing and Grab Taxi.

As per a report by Business Standard, apart from all the other funding that Ola can receive, the UC-RNT Fund, a born of a partnership between former Tata Sons chief Ratan Tata and the University of California's investment arm, could plough $50 million into Ola.

The valuation of the new round is not known, but given that the company seems to be losing market share to Uber and it was reportedly unable to match revenue growth with its peers such as Lyft Inc., there's a strong possibility that the funding could be a "down round" worth less than $5 billion.

Once this round of funding goes through it is expected to help Ola go up against global giant Uber, which has been aggressively trying to capture more market share in India.

The USD 2.5-billion funding in Flipkart by SoftBank was made through SoftBank Vision Fund, the world's largest technology-focused fund.

Earlier this year, Uber exited direct operations in Russian Federation.

The deal on the first United States dollars 1 billion is expected to be closed soon and will not see participation from Ola's largest investor, SoftBank.

Since the beginning of this year, Ola has so far raised $150 million from RNT Capital Advisors, US hedge fund Falcon Edge, and New York-based hedge fund Tekne Capital Management.

According to sources, the move comes at a time when Softbank is working on selling Snapdeal, an e-commerce platform it invested heavily in India, to larger rival Flipkart. SoftBank is also said to be considering investment in Uber.

Like this



03 Октября 2017
Uber's UK Head to Step Down Amid London Licensing Fight
The regulator decided not to renew Uber's London licence last month after it deemed the firm "unfit" to run a taxi service. Mr Khosrowshahi took over at Uber in August after predecessor Travis Kalanick resigned following a series of scandals.

03 Октября 2017
Lonzo Ball tweaked his ankle, and Lakers fans freaked out
It is not the first time Ball wore The Black Mamba's shoes, as back in the Summer League, he wore the Kobe AD's during a game. The highlight reel play capped off a solid first quarter for Ball, who finished with five points, two assists and a steal.

03 Октября 2017
Mugabe in SA, leaves wife Grace behind
He also said that this meeting will give the two countries a platform to review the bilateral relations between the countries. The senior officials have met for the past two days in preparation of our meeting of today.

03 Октября 2017
EPS for Reliance Steel & Aluminum Co (RS) Expected At $1.25
Jefferies Group LLC restated a "hold" rating on shares of Reliance Steel & Aluminum a report on Thursday, August 31st. With 62,200 avg volume, 1 days are for VESTAS WIND ADR (OTCMKTS:VWDRY)'s short sellers to cover VWDRY's short positions.

03 Октября 2017
Super Micro Computer (SMCI) Earning Somewhat Positive Press Coverage, Analysis Shows
Susquehanna upgraded it to "Positive" rating and $33 target in Wednesday, January 27 report. (NASDAQ:SMCI) for 27,730 shares. The stock of Super Micro Computer, Inc. (NASDAQ: SMCI ) has declined 1.14% since September 30, 2016 and is downtrending.

03 Октября 2017
Red Sox beat Astros to clinch AL East title
More than two yards of fabric was used for the customized hat, which is almost three feet in circumference. I'm up for pitching. "But you're still looking to evaluate all the way through the final out".

03 Октября 2017
Mobile US, Inc. (NASDAQ:TMUS) Analyst Coverage
Wells Fargo & Company restated an "outperform" rating on shares of T-Mobile US in a research note on Wednesday, June 28th. Finally, Public Employees Retirement System of OH increased its position in T-Mobile US by 16.4% during the 2nd quarter.

03 Октября 2017
Crude Oil Tumbles On OPEC Report
With supplies outpacing demand, the glut of oil is expected to linger in 2018. EFS *Brent's premium to Dubai swaps for December was at $1.94 per barrel.

03 Октября 2017
Alliance Holdings GP, LP (NASDAQ:AHGP) Valuation According To Analysts
Acadian Asset Mngmt Ltd invested in 283,866 shares. 12 funds opened positions while 14 raised stakes. 3,400 are owned by Next Gru. Mountain Lake Investment Management Llc bought 236,500 shares as the company's stock declined 5.55% while stock markets rallied.

03 Октября 2017
Michelle Obama gets dragged by Trump supporters for reading Dr. Seuss books
While Soeiro's school is doing well, "school libraries around the country are being shuttered", Soeiro wrote in the blog post. In her letter, she explained how important education is for children and shared about her own family's enjoyment of Dr.