Our home-grown cab aggregator Ola seems to have bagged an investment of $100 million from none other than Sachin Bansal, the cofounder of Flipkart. If the deal materializes, it is going to be the largest personal investment by an individual investor in the Indian internet space.
Bansal bagged $1billion from selling his stake of 5.5% in Flipkart to Walmart. With the investment in Ola, he will be investing nearly 10% of his personal wealth and will become a significant shareholder in the company. Bansal’s investment in the aggregator will be mostly through subscription of new shares, with a small component coming through a secondary sale by existing investors. Ola’s valuation has ranged between $3 billion and $4.5 billion across secondary and primary transactions that have taken place in the past year and this deal is thought to have a similar effect.
Sachin and Bhavish Aggarwal, cofounder of Ola have had a close relationship since a couple of years and Bansal’s entry will give Aggarwal that much-needed muscle in the boardroom against the largest shareholder in the company, Japanese based Softbank. His investment comes after Ola raised $50 million last month from two new Chinese investors and its plans to expand into New Zealand after it launched operations in Australia in February and in the UK in August. This fat cheque can give the aggregator a much-needed push in its overseas operations.
Sources: Economic Times