Ola is receiving $2 Billion financial support from a team of sponsors that comprises Tencent Holdings and SoftBank Group, claimed the industry insiders.
The funding, fraction of which has previously come in, will assist Ola boost its place against Uber, the US-based rival. The two are busy in a strong battle for control in the market of India and have invested in billions of dollars in discounted rides and driver incentives for users. Various sources, who did not wish to be recognized as the talks are sensitive, claimed that the round is still to be concluded and the figures might add up to almost $2 Billion when it takes place.
A declaration might be made in the coming couple of weeks, they further added. SoftBank and Ola refused to speak on the issue while Tencent was not available instantly. ANI Technologies, which operates Ola, has previously this year lifted various rounds of funding. As per papers filed with regulatory managers, it lifted more than Rs 231 Crore from Tekne Private Ventures in June via issue of preference shares. In March 2017, the SoftBank-supported Ola had lifted Rs 670 Crore (almost $104.4 Million) in funding from sponsors comprising UC-RNT Fund, a company in collaboration between top industrialist Ratan Tata and the University of California.
ANI Technologies, which is not an openly traded firm, counts amongst its sponsors names such as Tiger Global, SoftBank Group, Accel Partners US, and Sequoia India. Its income posted a stellar development at Rs 758.23 Crore at the time of 2015–2016 fiscal year as compared to Rs 103.77 Crore in the last fiscal year. On the other hand, it registered a combined loss of more than Rs 2,311 Crore, which is almost Rs 6 Crore per day, at the time of that fiscal owing to promotional expenses and heavy advertising as well as other costs.
Previously this year, Tencent and SoftBank spend in largest e-commerce company of India, Flipkart. The funding worth $2.5 Billion in Flipkart by SoftBank was carried out via the biggest technology-aimed fund in the world, SoftBank Vision Fund. It might not be determined if the spending in Ola might be made via SoftBank Vision Fund or by SoftBank group.