Ola, India's home grown online cab aggregator, has raised a fresh bout of funding with its existing as well as new investors. The cab aggregator raised funds to the tune of USD 350 million at a lower valuation of USD 3.5 billion, down from the highs of USD 5 billion it enjoyed earlier.
Ola, India's home grown online cab aggregator, has raised USD 350 million from a clutch of investors—existing and new—reports The Financial Express.
The latest round of funding values the company at USD 3.5 billion, lower than the USD 5 billion valuation it enjoyed at the peak of the start-up frenzy.
The report says that the company has been looking to raise money for the last six months, and finally had to settle for a lower valuation than what the management was hoping for.The last time Ola raised funding was in November 2015, when it raised USD 500 million at a valuation of about USD 5 billion. Owned by ANI Technologies Private Limited, Ola, since its inception has received USD 1.23 billion in funding from a wide array of investors like Tiger Global, Softbank Capital, Sequoia Capital etc.
According to Ola’s latest profit and loss details, the cab aggregator posted a loss of Rs 755 crore against revenues of Rs 418 crore.
App-based cab aggregator leaders Ola and Uber are both treading rough waters amidst drivers agitating against low rate of remunerations and low incentives. The aggregators were also dealt a body blow as local governments also banned shared rides, which is one of the major revenue generators for the cab operators.