Ola Will Raise $100 Mn from RNT And Falcon Edge Capital

Ola, the Indian cab service provider is having words with RNT Capital Advisers investors to raise a fund of $100 million. RNT Capital Investors is a fund setup by Ratan Tata, former Tata Sons chairman.

Report also revealed that the company is about to talk with few other capitalist for subsidizing round. It is intended to enhance its services to have an edge over its strong rival especially Uber in recent market scenario.

Reason behind two capitalist

Few important information emerged from the whole scenario and suggested by a belonging that Ola is about to get funds of $60 million dollar from RNT capital whereas rest of the funding will be raised by a New York based capitalist called Falcon Edge Capital, which is a primitive investor in Ola. Valuation of new subsidizing would be at $3.5 billion. If deal goes through as expected, then Ola will see a huge lift. The first round of the organization were evaluated in November of 2016, when it raised the funding and that was esteemed at $3 billion.

RNT Capital recently established a $250 Mn compilation with the University of California Investment having the aim to invest in Indian organization but this funding will mark as its major funding. Moreover, Ratan Tata individually made a contribution of Rs 1 crore in ANI technology, parent company of Ola.

Based on a report of Research and advisory firms RedSeer Management Consulting, Ola and Uber together achieve almost four-crease increment in the quantity of rides in 2016 in comparison of last year. The organization attained around 6 million rides per week of average in between September and December 2016 through its all offering like taxis, auto rickshaws and transport transports. This fund raising comes at a time when the company’s market hold has improved which is a direct result of the cut down of incentives to drivers. The current survey found out that Ola is market leader in the field of cab service provider with a market hold of 65% which is followed by Uber.

Economy services like Ola Micro, UberGo, Mini, etc, are serving as the primary revenue source for Ola as well as Uber and it contribute almost 70-75% of wholesome. Uber is an example of most planned financial start-up has also expanded its business and trying to get a stronghold in Indian market after selling its operation in China to the Chinese rival Didi Chuxing.

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