Sep 19: In a fresh round of funding, cab aggregator Ola, backed by ANI Technologies, has raised $50 million from two new Chinese investors. This translates to around Rs 360 crore. The new Chinese investors are Sailing Capital, hailing from Hong Kong and China-Eurasian Economic Co-operation Fund invested via Autofortune1 Ltd and Odyssey Bravery Ltd, which are registered in the British Virgin Islands.
According to the official website of Sailing Capital, it was established as a private equity fund by Shanghai International Group in the year 2012, in order to make the overseas investment. When it comes to Shanghai International, it is owned by the state.
The second investor, China-Eurasian Economic Co-operation Fund is investment fund, backed by the state. In the year 2014, Chinese president Xi Jinping made the announcement regarding the company as part of his Belt and Road Initiative. With the company the state aimed at making investments in projects and companies in Asian, African and European countries.
Ola has not yet commented on the news. According to news reports, whether the investment is part of a larger funding round still remains unanswered. With the investment of $25 million each, both the Chinese investors will together hold a stake of a 1.2% stake in Ola.
In October 2017, Ola had raised $1.1 billion (Rs 7,174 crore) in a round led by China’s Tencent Holdings Ltd, Japanese investor SoftBank Group Corp and a few new financial investors hailing from the US.
The online transportation network company, set up by IIT Bombay alumni Bhavish Aggarwal and Ankit Bhati in 2011 had announced a fundraising round in 2015. Post the announcement, the company, mopped up $500 from various investors including the Chinese ride-sharing app Didi.
The homegrown company was in the news recently with regard to the acquisitions it had made. A public-transport ticketing app was acquired by Ola in April this year. The amount for which it was acquired was not revealed.
In an all-stock deal, the company acquired food delivery platform Foodpanda from its parent company Delivery Hero hailing from Germany in December 2017.
In a separate announcement on Tuesday, Ola said it is entering New Zealand. The company had forayed into Australia in January this year to compete with US-based Uber.
Following the announcement of the company’s entry into the UK market last month, they also announced their entry into New Zealand market on September 18. With an aim to compete with the US transport company Uber, Ola had begun its operations in Australia in January 2018.