The rivalry between Indian-based Ola and US-based Uber may go up a notch, as Ola is set to raise another round of funding to the tune of USD$1 billion from Temasek, the Singapore-based sovereign wealth fund. There are possibly other investors as well.
These investments will be partly through secondary sale of shares plus other direct routes. In Ola’s 8-year existence, this is the first such liquidity-raising instance and the company’s valuation may be pegged around $6-7 billion. Ola has not officially confirmed any of these details.
On the identity of existing investors divesting their shares in this deal with Temasek, the reports suggest it could be Rehan Yar Khan, who has invested in his personal capacity and the original owners of Taxiforsure, who were allotted Ola sure at the time of its takeover.
The overall valuation of the company also goes up from the last exercise when the figure of $4 billion was quoted and the Chinese investment firm Tencent Holdings had pumped in $400 million.
With the fresh infusion of funds, the rivalry between Ola and Uber is bound to get hotter in the coming days.
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