Feb 28, 2017
The past year started with a very rough ride for home-bred cab-hailing e-commerce company Ola. Now they have secured fresh funds worth $350 Mn at the valuation of $3.5 Bn from its existing investors as well as new investors.
They claimed the valuation of $5 Bn at their beginning which has significantly lost its numbers to $3.5 Bn. SoftBank Group Companies a Japanese E-commerce giant invested in two of India’s leading company including Ola & Snapdeal at $555 Mn. SoftBank had a loss of Y39 Mn due to decline in fair value of preferred stock in ANI Technologies (Ola) & Jasper Infotech ( Snapdeal) and appreciation of Japanese currency against the rupees.
In December 2015 Vanguard Mutual Funds an American Investment Firm funded ANI Technologies Ltd, parent company of Ola, with worth $500 Mn which it cut down to over 40%. The funds stands to $3 Bn from $5 Bn.
The company is partnered with SoftBank, Tiger Global, Sequoia Capital and Matrix Partners.
The year wasn’t quite a good ride for Ola as it saw wild agitation of drivers of Delhi & Bengaluru and the fall in the valuation of funds led it miserable to accept the low valuation cost. Numerous exits of top management were also a drawback , April 2016 saw the start of exits, Pradeep Dodle Ola’s Head of Cab Management left the company along with VP, Harsha Kumar. In December 2016 Sundeep Sahni, VP of the firm resigned. The starting of this month saw two of its leading executives leave, CFO Rajiv Bansal & CMO Raghuvesh Sarup.