Ola May Raise $100 Mn From Steadview Capital At $5 Bn Valuation

Bengaluru-based ride hailing platform Ola is reportedly finalising $100 Mn investment from existing investor Hong Kong-based hedge fund Steadview Capital.

Citing unnamed sources, a report by ET stated that the expected round of funding may boost Ola’s valuation to $5.5-6.5 Bn. If successful, Ola’s valuation may be the highest that an urban transportation company has been able to achieve till now.

This speculation comes at a time when Ola is also reportedly in talks for raising $100 Mn from Flipkart cofounder Sachin Bansal.

The report also stated that both Steadview and Bansal will be participating in the same round. While some transactions will be done using secondary sale of shares, the primary money will be coming at higher valuation.

In reply to an email query by Inc42, Ola declined to comment.

Ola was founded in 2010 by Ankit Bhati and Bhavish Aggarwal. It had raised $50 Mn Hong Kong-based Sailing Capital and the China-Eurasian Economic Cooperation Fund (CEECF) which valued the company between $3.7 Bn and $4.3 Bn.

In order to strengthen its position in the market, Ola has been in talks to raise funding to boost up its valuation.

Recently in September, Ola is reportedly in talks with South African-based conglomerate Naspers LLC to raise funding at a valuation of $7-8 Bn.  It is also in talks with Singapore’s Temasek Holdings and two other funds to receive $1 Bn fresh funding.

Earlier this month, Ola also got approval from Competition Commission of India (CCI) to acquire an additional 6.75% stake in ANI Technologies Pvt. Ltd which owns the platform

Ola also announced its plans to expand to New Zealand and has appointed Brian Dewil as its Country Manager there. In August, it received licences to begin its operations in South Wales and Greater Manchester as well.

[The development is reported by ET]