Ola raises $1.1 billion led by Tencent

Ola looks to get another $1 billion

Ola, India’s largest ride-hailing application has recently closed a $1.1 billion round of financing, led by Tencent, a Chinese internet conglomerate.

Salient points of the story:

. Ola said that it is in “advanced talks with other investors to close an additional $1 billion as part of the current financing round” taking the total raise to over $2 billion.

. The round will give Ola a post money valuation of over $4 billion.

. The company said in a statement that existing investor SoftBank besides “other new US-based financial investors” have participated in this round, without naming them.

. Sources close to Ola said that the company is looking to close the round by end of the year.

. Softbank, largest stakeholder in Ola, is also in the process of picking up a large stake in its troubled global rival Uber.

. A large investor like Tencent is expected to deal with the challenges imposed by Softbank in the company.

“Ola’s unique local offerings are tailored to India’s burgeoning transportation needs. The strategic partnership with Ola makes it possible for Tencent to be part of the fast-growing ride-hailing space in the country,” said Martin Lau, president of Tencent Holdings.

Excerpts from ‘The Economic Times’