Indian biggest cab-hailing company Ola, operated by ANI Technologies Pvt. Ltd, has raised about $50 million (Rs 322 crore) from New York-based hedge fund Tekne Capital Management LLC, as part of the company’s ongoing funding round.
An ET report quoted that the latest round of funding will push Ola’s valuation to about $3.65 billion from $3.5 billion. And in August 2015, the company was valued at $4.8 billion.
This is not all, Ola is talking to several other investors, including Coatue Management LLC, for raising more funds in this round. Last month, the Bangalore-based company had raised Rs 670 crore in a fresh round of funding from Ratan Tata’s venture fund RNT Capital Advisers LLP and US hedge fund Falcon Edge Capital LP .
Tekne Capital is a hedge fund founded by Beeneet Kothari, a former portfolio manager at PointState. Coatue is a technology sector hedge fund that invests in public and private equity markets.
The funding comes at a time when Ola’s arch rival, Uber Technologies Inc., has been facing a host of issues. Besides, Uber’s board of directors has also been asking CEO Travis Kalanick to step aside temporarily and a host of other policy changes are being applied due to several sexual harassment complaints.
Before this Ola rasied PE funds from Falcon Edge Capital of Rs.6.7 billion in May 2017 and $330 million from Soft Bank in February 2017.
Founded by Bhavish Aggarwal and Ankit Bhati in 2010, Ola had previously raised money from marquee investors including SoftBank, Tiger Global and Matrix Partners.
Ola has been burning a huge amount of cash to gain market share in its bid to stave off competition from Uber. Ola reported a three-fold rise in consolidated net losses to Rs 2,311.7 crore for 2015-16, as total expenditure surged to Rs 3,078.19 crore from Rs 899.7 crore in the previous fiscal year. Its operating revenue jumped to Rs 438.6 crore from Rs 57.5 crore during the period.
Ola’s recently-disclosed financials for its cab-leasing arm, Ola Fleet Technologies Pvt. Ltd, show it has posted a loss of Rs 13.3 crore in 2015-16, compared to a profit of Rs 3.9 crore in the year-ago period.