Ola is India’s very own ride-hailing company. It has tackled Uber on every step of the way. They have been on their toes to match every progress of Uber. Uber being a global giant had already an established business but Ola was starting out and still managed to catch up with Uber. That said, Ola is the second largest unicorn in India with some huge investments in it.
Former Flipkart CEO and co-founder Sachin Bansal and Ola’s co-founder Bhavish Aggarwal have grown pretty close over the last few years. It is safe to say that they embrace the same ideology when it comes to Indian startups. Sachin Bansal in 2016 said that no Indian startup needs global companies to take over they just need the capital. Aggarwal is of the same opinion and has managed to keep his business somehow. The duo also launched IndiaTech.org which was founded to represent internet companies from India.
Sachin Bansal, exited Flipkart immediately after Walmart took over. He earned almost $1 billion from his stake in Flipkart and is now an angel investor and many other things. Bansal, after exiting Flipkart made a promise to invest around $100 million in Ola. This was previously reported by Economic Times, however, the relations between Sachin and Bhavish played a key role in this promise. In that case, Sachin has invested $21 million which is around INR 150 crore in Ola.
The news came out today and it was according to the filings in the registrar of companies (RoC). Bansal was sold around 70,588 ‘Series J’ preference shares. This investment hasn’t tweaked Ola’s worth much which is stable at $5.7 billion after a huge investment of about $74 million from Steadview Capital. These investments come in handy after Softbank was behind Ola. That said, Softbank invested around $8 billion in Uber and is the largest shareholder in the American company.
Softbank wanted to have a strong presence in Uber and Ola. This was to make sure that they profit in any given case. That said, Ola managed to make last minute tweaks to their policy to keep Softbank out. Sachin Bansal, Temasek, and Steadview helped Bhavish Aggarwal and Ola for the same. Softbank’s strategy was to pressurize both the companies for consolidation as both of them were busy giving out huge discounts at the time to the consumers. There were also huge incentives paid to drivers to attract them to join their business.
– Unmesh Phule