Ola is in the process of finishing a $100 million investment coming from one of their backers, Steadview Capital, a hedge fund from Hong Kong.
The ongoing financing round is expected to value Ola at $5.5-$6.5 billion, three people familiar with the talks told ET, on the condition of anonymity. The latest valuation for Ola is the highest that the urban transportation company has been able to ratchet up till date.
“Steadview is putting a large sum of capital as part of the round where Sachin Bansal is also investing. While a bunch of the transaction is in secondary sale of shares, the primary money is coming at a higher valuation,” a person privy to the deal talks said.
Emails sent to, both, Ola and Steadview Capital on Tuesday afternoon, did not elicit any responses at the time of going to press.
Last year, Ola had raised $1.1 billion at a valuation of close to around $4 billion, and had said at that time it will raise another $1 billion. The company has been targeting a higher valuation of $6-$7 billion for the additional capital.
ET reported in its edition dated October 11 that Flipkart’s co-founder and its longest-serving CEO, Sachin Bansal is likely to invest $100 million in the company, and which could go up to $150 million. The capital infusion by Steadview is part of the same ongoing round, sources said.
The developments come a little over a month after Ola, which competes with global ride hailing major Uber, raised $50 million from two new Chinese investors — Sailing Capital, an investment fund backed by the Communist Party-owned financial services major Shanghai International Group, and China Eurasian Economic Cooperation Fund.
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