Ola has managed to add a major name to its ongoing funding round by attracting a $92 million investment from Sachin Bansal, who is the co-founder of the e-commerce giant Flipkart. The deal is valued at 650 crore INR and will allow the ride-hailing company to improve and expand its services.
Ola is an eight-year-old company and giving fierce competition to another ride-hailing giant Uber in the Indian market. The deal represents the highest investment from Sachin Bansal after he left Flipkart, following the $16 billion acquisition from Walmart.
It has not yet been confirmed whether Sachin Bansal will take up an advisory role at Ola following this deal.
This latest round of investment is part of the Series J round where Ola expects to raise a whopping $1 billion, which will put the total valuation of the company to over $6 billion. Bansal’s investment comes just over a months after Steadview Capital put up $75 million for the company.
After Ola completes its Series J round of investment, it will begin to compete even more fiercely with Uber and help the company to eat into the market share of Uber. Ola will also be able to aggressively expand into newer cities inside India and add more customers to its database.
Sachin Bansal believes that Ola is one of the most promising consumer-based companies in India. He also states that this company has a deep and profound impact in the Indian consumer ecosystem, and in the coming days this company will be able to create a deeper impact in the society and create a trusted brand name. He is also personally thrilled to join the journey of Ola and looks forward to contributing to the success and growth of the company.
Agarwal, who is the CEO of Ola, terms Sachin Bansal as ‘an icon of entrepreneurship.’ He goes on to further state that Bansal’s investment into his company is a huge encouragement for all the employees of Ola and will spur them on to serve a billion Indian people with their services. He is thrilled to receive such an investment and looks forward to building one of the most impactful companies in India.
Ola’s biggest competitor is Uber, which considers India to be their most major market outside of the US. Uber initially started slowly in the Indian market, but it is currently pushing hard to gain a foothold in the Indian market.
To take on the challenge of Uber, Ola has expanded across 100 cities and towns all over India. It has also added more services besides cars, offering customers the option to take other modes of transport. Ola has developed its very own mobile money system which allows customers to pay for its services within its platform. The company has also invested heavily in new startups and introduced new marketing strategies to woo customers onto its app.