Yuri Milner’s investment firm DST Global is likely to invest about $400-500 Mn in cab booking startup Ola in a new round at a valuation of $2.5 Bn. This news comes in just a few days after Ola’s acquisition of TaxiForSure (TFS) sufficed in media.
According to the people close to the development, the final terms of the financing deal are currently being negotiated. Ola’s existing investors include Tiger Global, Matrix Partners, Steadview Capital, and Sequoia Capital.
Milner already has a personal investment in Ola, if completed, this will be DST’s second investment in India’s domestic consumer internet market, DST had picked up a stake Flipkart in mid-2014 when it invested in the company.
“The termsheet is in and now the discussions are revolving around a few of the terms which need to be agreed upon mutually. Ola’s acquisition of TFS was a big reason for the company to raise fresh capital,” said a source.
Ola currently also in talks with TaxiForSure for an acquisition at an estimated $200 Mn in stock and the deal which will be done at a valuation of $1.4 Bn. Ola would be likely shelling out around $50-60 Mn in cash to TFS founders and investors.
Ola was founded in 2011 by IIT Bombay graduates Bhavish Aggarwal and Ankit Bhat. Currently it is present in 67 cities and has received $277 Mn in five rounds. Last year, Ola had received INR 250 Cr. funding led by Steadview Capital and VC firm Sequoia Capital, with its existing investors Matrix Partner India and Tiger Global also participating.
Ola’s biggest competitor in the country, the San Francisco-based Uber, is facing regulatory issues in the country, and if reports are to be believed Uber’s IP might get blocked in the country.
Merucabs, CarzOnRent’s EasyCabs, Taxipixi etc. are other players dealing in this space.