Business

Ola becomes the second largest unicorn again after a major investment

Finance written on paper

Ola has been the nemesis of Uber in India. The company gained a lot of popularity when it tackled Uber with aggressive pricing on the rides. That said, it is now an established ride-hailing company in India alongside Uber and they have some to no competition in India. Uber being a world-renowned company, India is only a part of its market, however, Ola’s market is not stretched beyond four to five countries as of now. It has recently started its business in Australia and New Zealand.

The company has got a lot of backing as the ride-hailing business in India might be stagnant as of now but is shared majorly by Ola and Uber. In spite of that, the company is looking to venture into new avenues. The stagnant ride-hailing business in India has urged both the giants to hit different roads. In that case, the companies are now battling out in the food-delivery business.

Ola bought Foodpanda to enter into the food-delivery business while Uber has launched UberEats. However, both these companies are way behind Swiggy and Zomato who are the big boys. That said, Ola is taking it easy in that department.

Recently, Ola founders had to fight for their existence. There was a huge threat over their hold of the company as Softbank, a major Japanese investor tried to invest a staggering billion dollars in the company. This might sound good but Ola’s existing investor Softbank was looking to take control of the company as it already had a 26% share in the company.

That said, the company founders sought help from the likes of Steadview Capital, Flipkart co-founder Sachin Bansal and many other investors whom they could trust. That said, Steadview Capital has made another huge investment in the company. This has cemented the position of the owners even further. That said, Steadview Capital invested $74 million which is around INR 520 crore.

This investment has taken Ola’s worth up to $6 billion. The Indian unicorn is back to its second place being the second largest unicorn in the country. That said, it sold around 245,082 preference shares at a price of $301 per share according to the filings checked by Inc42. This investment comes right after a small $1.9 million investment from China’s electric vehicle company.

Ola has received almost $4 billion in funding since its inception. There are some major investors in the company and the names are also big. Softbank, Tencent Holdings, Temasek Capital and many more investment companies.

– Unmesh Phule

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