Ola is India’s second-biggest unicorn valued at $5.7 billion. The company raised tremendous funds in the last year or so. It has managed to do so again. In the last month itself, the company managed to secure a $74 million funding from Steadview Capital, a China and England based Venture Capital fund. This investment made them the second largest unicorn in India. Sachin Bansal, an ally of Bhavish Agarwal, also invested $21 million in Ola recently.
That said, the company has grabbed another ‘Series J’ funding this time from an USA-based company. The funding comes at a very unique time for Ola as Uber, its severe competitor, has entered the boat business in Mumbai and this $15.6 million funding in Ola from multiple companies in the US might just enable them to do the same.
The ANI Technologies Pvt Ltd owned Ola was funded by Transmarket Group, J3T Ventures and Lyon Assets were the companies, which have trust Ola with their money. The funding is very brave to be accepted from Ola as they have a lot of existing investors in the company. There are rumors that Sachin Bansal is going to keep his promise of $100 million investment, which will be another round of funding.
That said, Ola and Uber fight it out on regular basis. No one wants to lose market share to each other as it is very tight on this side of the business. Although there are no competitors as of now in technology and business there can be a sudden rise of a vigilante that might take away all the thunder from the companies.
Uber India and Ola are standing on two ends of the spectrum when it comes to revenues and losses. Uber has recorded massive growth while Ola is busy gathering their losses. Uber have higher expenses while Ola is trying to cut down on cash burns. Uber is investing more and more in other ventures while Ola is getting in investments into the company to cope up with the tremendous pressure.
Uber India’s revenue grew 19 times from the previous financial year in the year 2018. It reached around $3.05 million, which is about INR 21.5 crore. This growth was at the expense of increased expenses. Their expenses grew to $3.01 million, which is about INR 21.26 crore. Ola, on the other hand, faced a steep task of limiting their losses. It did limit its losses as they shrunk by 42%. They had incurred losses of about $690 million in the financial year 17 but reduced it to $400 million in Financial Year 2018. During all this, the consolidated revenue of Ola increased by a splendid 61% and reached up to $313 million in FY18 which was about $194.52 million.
Uber is investing in UberEats as it has grown to a great extent while Ola has cut down its investment in Foodpanda, seeking to limit the cash burns. Ola is facing a lot of heat at the moment from foreign investors. There are rumors that it is going to end up like Snapdeal or Flipkart but the fight against foreign clutches will go on for a longer period of time.