Steadview Capital is reportedly putting capital in a large sum in the round where Flipkart co-founder Sachin Bansal is also investing
Cab aggregator Ola is in discussion with Hong-Kong based hedge fund Steadview Capital for a $100 million investment, The Economic Times reported.
The latest funding round is expected to value the ride-hailing company at $5.5-5.6 billion, sources told the paper, the highest any urban transportation company has been able to get till date.
The hedge fund will reportedly chip in a big sum in the round where Flipkart co-founder Sachin Bansal will also invest. “While a bunch of the transaction is in secondary sale of shares, the primary money is coming at a higher valuation,” the ET report quoted a source.
It was reported earlier that Bansal may invest $100-150 million in the company.
In another funding round in 2017, Ola raised $1.1 billion at a valuation of nearly $4 billion. At the time, the company had said it would raise another $1 billion, targeting a higher valuation of $6-7 billion.
Over a month ago, Ola had raised $50 million from new investors based in China, Sailing Capital — an investment fund which is backed by Shanghai International Group, and China Eurasian Economic Cooperation Fund.
Both entities now hold a 1.17 percent stake each in ANI Technologies, the parent company of Ola.
“In the past year, there has been a palpable slowdown in the taxi business, along with supply constraints. In order to shore up demand among investors, Ola has to show growth in new categories. This is why they have decided to pump money in their food delivery vertical Foodpanda,” another source told the paper.The company’s largest shareholder is Japan’s SoftBank. Bhavish Aggarwal, the co-founder of Ola with Ankit Bhati, is trying to make the company profitable in its core taxi aggregation business.