Ola has raised $50 million from Sailing Capital (SC) and the China-Eurasian Economic Cooperation Fund (CEECF).
The Bangalore-based startup company latest investment has inched up its valuation to $4.3 billion, from $3.5-4 billion in last October.
The deal was in negotiation stage for past two months.
The new investment will give SC and CEECF a stake of approximately 1.17% in ANI.
Ola aggressive growth and business model has also been attracting new investors. Sachin Bansal, former CEO and co-founder of Flipkart, is reportedly exploring a way to buy secondary stakes in Ola.
Bansal had previously praised Ola’s co-founder and his platform for developing and making it large company. Bansal, after his go out from Flipkart, is making plans to elevate $1 billion startup-focused funds. until date, he has invested in seven ventures with a complete investment of $26 million.
except, current investors Steadview Capital is also trying to improve its stake. Softbank, Tencent, Tiger global and Matrix partners collectively keep extra than 60 Percentage of Ola’s shares.
aside from raising cash, Ola is breaking into new markets beyond India. After Australia and united kingdom launches, it now plans to go into the new Zealand marketplace.
It plans to start with cities like Auckland, Christchurch, and Wellington. In offshore markets, Ola has been giving out a low fee fee of 9 Percentage cent to lure extra drivers on its platform. it’s going to compete with Uber and Zoomy in New Zealand.
At present, the ride-hailing company has been doing approximately 2 million rides each day. It plans to obtain profitability by the quit of 2019.
decreasing fee and incentives for drivers in addition to lowering discounts for riders are elements driving Ola closer in the direction of the road of profitability.
The take-home pay for drivers dropped 33 Percentage inside the final 12 months, in accordance to research consultancy Redseer’s file.
Ola’s running loss has multiplied 32 Percentage cent to Rs 3,731 crore in FY17 even as working revenue extra than doubled to Rs 1,178 crore. besides, its other costs (now not defined) also rose as much as Rs 4,052 crore from Rs 2,422 crore.