Online transportation network company Ola has raised a fresh funding of about $350 million from Japan’s existing investors Softbank and two others. Ola’s investors include Softbank, Tiger Global, Sequoia Capital and Matrix Partners.
According to the business reports, the latest funding was done at a rate of $3.5 billion valuations, a decline of 30 percent from a peak of $5 billion. From past six months Ola was looking to raise funds and now had to settle down for a lower valuation to seek this funding.
This is likely to be the first fund raised by a unicorn company at a lower valuation. Ola had been under tremendous pressure since its rival Uber started pumping money into the Indian market to get a larger share of the market. Uber pledged to pump in $1 billion in India.
Seems like this year hasn’t been great for these cab aggregators. There is an increased pressure from both the government as well as the driver partners. Driver partners in Bengaluru and Delhi too are protesting for a hike in their incentives and fares.