The paperwork has been finalized and the deal is awaiting approval from CCI as China’s Tencent has finalized $400 million investment in ride-hailing Ola valuing Ola at over $3.8 billion. Sizeable portion will be allotted towards boosting the electric vehicle segment. Ola could also raise additional capital from US- based hedge funds Coatue Management.
Ola has raised $2 billion from investors such as Tencent and Softbank and this new entry of Tencent will help Ola to counter the influence of its largest shareholder Softbank. Ola also managed to raise about $150 million from funds like Ratan Tata’s venture fund RNT Capital Advisors, US hedge fund Falcon Edge and New York based hedge fund Tekne Capital Management.
Ola’s founders Bhavish Aggarwal and Ankit Bhati amended Article of Association (AOA) to require Softbank to seek their approval besides the board to increase their stake either through primary or secondary share purchases. Ola raised $250 million from Softbank in November 2016 after which it has kept the funding round open.
Ola is believed to complete approximately 1.5 million rides a day nearing Uber’s 1.3 million rides a day in August 2017 according to Analysts. Founded in December 3 2010, Ola is the biggest cab ride mobile application in India.
About Tencent Holdings
Tencent Holdings is a Chinese investment holding company that provides Internet and mobile value-added services (VAS), and online advertising services in Mainland China, the United States, Europe, and internationally.
Tencent Holdings Limited was founded in 1998 and is headquartered in Shenzhen, China.