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Ola gets Rs670 crore from Ratan Tata, Falcon Edge

Bengaluru: Ratan Tatas RNT Capital Advisers and existing investor Falcon Edge Capital invested Rs670 crore in Ola in the November financing round where the taxi aggregator raised Rs1,675 crore from SoftBank Group Corp., according to regulatory filings.

Tata, chairman emeritus of Tata Sons Ltd, had invested an undisclosed amount in Ola, run by ANI Technologies Pvt. Ltd, in his personal capacity in July 2015.

Records filed with the Registrar of Companies and sourced from research firm Tofler show that Falcon Edge ploughed Rs402 crore into Ola and RNT Capital Advisers, a cooperation of Tatas privately held investment firm RNT Associates Pvt. Ltd and University of California, invested Rs268 crore. New shares were issued to both Falcon Edge and RNT Capital at Rs13,511 apiece.

Incidentally, Ola issued shares to SoftBank at Rs12,895 apiece in November, regulatory filings show, which entails that the companys valuation had increased by about 4.8% in the latest financing round.

Ola did not answer to an email seeking opinions. Emails sent to RNT Capital and Falcon Edge on Wednesday evening remained unanswered as of press time.

The home-grown online taxi firm, which has been striving to raise fresh capital since June 2016, is in talks with new investors to get at least $300 million more. If Ola gets new investors, SoftBank will invest more in the business, Mint reported on 14 April.

Pre-money denotes the valuation excluding the current rounds cash infusion. Olas post-money valuation will likely be dependent on the precise quantity of capital it finally brings, Mint reported on 14 April.

Ola is locked in a bruising battle with the neighborhood component of Uber Technologies Inc., the worlds most valuable and deep-pocketed start up, for dominance of Indias taxi-hailing market. After it sold its Chinese company to Didi Chuxing in August, triumphing in India became one of the top priorities for Uber.

Ola reported seven fold earnings growth in the year ended 31 March 2016, but losses almost tripled at Indias biggest taxi hailing start up on the back of heavy reductions to customers and spending on incentives to its motorists.

According to records sourced from Tofler, Ola posted earnings of Rs758.23 crore in 201516, compared with Rs103.8 crore in the previous year. Its loss almost tripled to Rs2,313.7 crore from Rs796 crore in the same span.

Ola and Uber collectively clocked a almost four fold rise in the number of rides reserved through their platforms in 2016 from a year earlier, according to a report by market research and advisory firm RedSeer Management Consulting Pvt. Ltd.

Ola and Uber collectively completed about 500 million rides in 2016, as against about 130 million rides the year before, as stated by the report. While Ola and Uber did not remark on the amounts, business and business executives said Ola clocked about 6 million weekly rides on average between September and December last year across its offerings of taxis, autorickshaws and shuttle buses, Mint reported on 17 February.

Bengaluru: Ratan Tatas RNT Capital Advisers and existing investor Falcon Edge Capital invested Rs670 crore in Ola in the November financing round where the taxi aggregator raised Rs1,675 crore from SoftBank Group Corp., according to regulatory filings.

Tata, chairman emeritus of Tata Sons Ltd, had invested an undisclosed amount in Ola, run by ANI Technologies Pvt. Ltd, in his personal capacity in July 2015.

Records filed with the Registrar of Companies and sourced from research firm Tofler reveal that Falcon Edge ploughed Rs402 crore into Ola and RNT Capital Advisers, a cooperation of Tatas privately held investment firm RNT Associates Pvt. Ltd and University of California, invested Rs268 crore. New shares were issued to both Falcon Edge and RNT Capital at Rs13,511 apiece.

Incidentally, Ola issued shares to SoftBank at Rs12,895 apiece in November, regulatory filings show, which suggests that the companys valuation had increased by about 4.8% in the latest financing round.

Ola did not answer to an email seeking opinions. Emails sent to RNT Capital and Falcon Edge on Wednesday evening remained unanswered as of press time.

The home-grown online taxi firm, which has been striving to raise fresh capital since June 2016, is in talks with new investors to get at least $300 million more. If Ola gets new investors, SoftBank will invest more in the business, Mint reported on 14 April.

Pre-money denotes the valuation excluding the current rounds cash infusion. Olas post-money valuation will likely be dependent on the precise quantity of capital it finally brings, Mint reported on 14 April.

Ola is locked in a bruising battle with the neighborhood component of Uber Technologies Inc., the worlds most valuable and deep-pocketed start up, for dominance of Indias taxi-hailing market. After it sold its Chinese company to Didi Chuxing in August, triumphing in India became one of the top priorities for Uber.

Ola reported seven fold earnings growth in the year ended 31 March 2016, but losses almost tripled at Indias biggest taxi hailing start up on the back of heavy reductions to customers and spending on incentives to its motorists.

According to records sourced from Tofler, Ola posted earnings of Rs758.23 crore in 201516, compared with Rs103.8 crore in the previous year. Its loss almost tripled to Rs2,313.7 crore from Rs796 crore in the same span.

Ola and Uber collectively clocked a almost four fold rise in the number of rides reserved through their stages in 2016 from a year earlier, according to a report by market research and advisory firm RedSeer Management Consulting Pvt. Ltd.

Ola and Uber collectively completed about 500 million rides in 2016, as against about 130 million rides the year before, as stated by the report. While Ola and Uber did not remark on the amounts, business and business executives said Ola clocked about 6 million weekly rides on average between September and December last year across its offerings of taxis, autorickshaws and shuttle buses, Mint reported on 17 February.

About the author

Yagvendra Singh Kumpawat

Yagvendra Singh kumpawat is the Head/Chief Digital Officer at Indira IVF Group with extensive 7 Years experience in Digital Marketing, Startup Consulting and has worked for global MNCs as well as startups.

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