Cab service provider giant OLA is raising $100 million from current shareholders for it’s expansion plans.
Intense rift between Ola and Uber
Ola, currently indulged in an intense rift with its contender Uber, had recently raised funds amounting to Rs 1,675 crore from its Japanese investor, SoftBank.
The endorsement was for issuance of adaptable securities at Rs 13,521 each through a rights issue.
Ola’s parent company confirms about funding
The parent company of Ola, ANI Technologies said that its board has affirmed about fund raising and made a statement that, “raising up to USD 100 million (about Rs 670 crore) by issue of 495,526 Series ‘l1’ preference shares of face value INR 10 each at a price per subscription share equivalent to INR 13,521”.
According to the documentation made to the Corporate Affairs Ministry under the Companies Act, the rights issue was booked for March 23, 2017.
Prospective use of Funds
The exact amount raised through the issue is still uncertain and Ola didn’t respond on it. As the document signaling that the perspective of issue includes, “meeting the growth and enhancement of business or services and to fortify the financial status of the company”.
Company is to fortify its base
In the wake of pitching its Chinese leg to its contender Uber, Ola has preferred India as its one of the foremost priorities. In this context, it contributes a remarkable investment in its operation in India to reinforce its base with extending driver partner community.
Ola is active in 110 cities of India
Ola is actively serving almost 110 cities of India whereas its rival Uber is active in 29 cities and now it is concentrating towards enhancing its services.
It is also interested in putting down huge wagers on latest technology and ideas like electric vehicles to be ahead of its contender.