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Flipkart’s Sachin Bansal books $21 million ride in Ola

The latest funding is a part of overall Rs 650 crore to be invested by Bansal in Ola.

Flipkart co-founder Sachin Bansal has put Rs 150 crore in the ride-hailing company Ola, according to the documents filed with the Corporate Affairs Ministry sourced by data research firm

70,588 fully and compulsorily convertible, cumulative ‘Series ‘J’ preference shares having face value of Rs 10 is allotted at a subscription price of Rs 21,250, the document said.

The latest funding is a part of overall Rs 650 crore to be invested by Bansal in Ola and allotment of these shares to Bansal is part of company’s plans to raise around $1 billion, PTI quoted sources as saying.

The investment followed the resolution passed at the meeting of the board of directors of ANI Technologies (that owns Ola) held on January 12, the documents showed.

Bansal reportedly made around $1 billion from selling his 5.5% stake in Flipkart to retail behemoth Walmart last year in a deal wherein latter acquired 77% stake in Flipkart for $16 billion.

Investment in Ola is perhaps Bansal’s biggest investment made so far. The e-commerce poster boy had reportedly backed more than a dozen early-stage ventures with up to $2 million.

The new round comes 4 days after Ola raised Rs 520 crore from Hong Kong-based hedge fund Steadview Capital with the issuance of 2.45 lakh shares.

Domestic brand Ola has been fighting for market supremacy with US-based Uber that is currently valued at a whopping $76 billion. Ola has reportedly been mopping up capital to fund its international expansions including Australia earlier last year, the UK in August and New Zealand in November late last year where Uber is already in dominating market position.

With the latest round, Ola’s total capital infusion stands at over $3.4 billion as per deals tracker Crunchbase. Ola is reportedly valued between $5.5-6 billion with the new round.

Ola had announced raised $1.1 billion in October last year from China’s Tencent and SoftBank Group while being in “advanced talks” to raise another $1 billion for over $2 billion total capital raising.

SoftBank is the common shareholder in both the companies with a significant stake. While it holds 15% stake in Uber, the stake in Ola is around 26%.

Food delivery is another area where the two companies are involved in a slugfest. While Uber launched its food ordering and delivery service UberEats in around May 2017, Ola acquired food delivery company Foodpanda in December 2017 and committed $200 million to grow this business. Zomato, Swiggy, are currently leading the restaurant discovery and food delivery market.

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Source: Financial Express