OLA IN TALKS WITH SOFTBANK, OTHERS TO RAISE FRESH FUNDS

Ola in talks with SoftBank, others to raise fresh funds

Held Discussions With General Motors As It Battles Uber

Home-grown transportation company Ola is likely to raise up to $500 million in a fresh round of funding led by existing investor SoftBank as it fights out cash-rich rival Uber to win the India market, people familiar with the matter told TOI.

With Uber's exit from China, the Travis Kalanick-led taxi hailing venture is doubling down on India as the two players square off in a battle which is likely to intensify, making it imperative for the Bengalurubased Ola to raise new capital.

TOI has also learnt that Ola held preliminary discussions with automobile giant General Motors, an investor in Uber's cross town competitor Lyft, a few months ago. GM's CEO Mary Barra had met with the taxihailing startup Ola's co-founder & CEO Bhavish Aggarwal in San Francisco a few months ago, but the talks with the automaker may not result in an investment in the company , sources said.

Aggarwal and SoftBank did not comment on the development, while Tony Cervone, SVP (global communications) at GM, said in an emailed response to TOI, “We won't comment on the possibility of talks with any potential partner.“

SoftBank recently led a $750million cash injection in Grab, Uber's competitor in Southeast Asia, signalling its support for its investee companies despite the overall slowdown in late-stage financing globally.

The deal, when it goes through, would be the largest in size for SoftBank in India after the abrupt exit of its high-profile president & COO Nikesh Arora in June. “Even after Nikesh's departure, Masa is very bullish on Ola and is ready to lead the round. But the deal contours are not final as yet,“ a person privy to the matter said on the condition of anonymity.

It could not be ascertained at what valuation the new capital is being raised, though Ola's last funding round a year ago valued it at $5 billion when it mopped up $500 million from Singapore's sovereign wealth fund GIC, Didi Chuxing and Scottish investment fund Baillie Gifford, among others, reported first by TOI. Sources, who cannot be named as talks are private and still ongoing, said Ola may look to launch a formal fund-raising process to rope in external investors to lead this new financing round. “SoftBank is very keen on backing Ola but there are chances of a new investor coming in as well.“

(toi)