With Singapore’s Temasek picking up a stake in ANI Technologies — the parent company of taxi-hailing application Ola — for $200 million, the business is now valued at $3.5 billion, persons familiar with the transaction said.
A regulatory filing with the Registrar of Companies (RoC) said the “Proposed Combination pertains to the indirect acquisition of less than 10% of the share capital of ANI by Ankit Bhati, Bhavish Aggarwal and MacRitchie through Lazarus from certain existing shareholders of ANI….” The documents were retrieved by Paper.vc, a data analytics firm.
Aggarwal and Bhati are co-founders of the taxi service and in July owned 7.15% and 3.64% of the company, respectively. Ola was valued at close to $3.9 billion in July 2018, according to Paper.vc.
The shares have reportedly been bought from a group of investors who bet on the taxi service in its early days. In July, Japan’s SoftBank held 26.1% while Tiger Global had a stake of 15.9%. The Chinese firm Tencent had a shareholding of10.3%.
Ola’s losses widened to Rs 4,897.8 crore in 2016-17 while the total income grew 70% to Rs 1,380.7 crore. In the previous year, the company’s income was `810.7 crore. The company had cash and bank balances of approximately Rs3,000 crore.
In the Indian market, Ola competes with Uber and while earlier Uber was believed to be the market leader, persons familiar with industry trends said that now Ola commanded a share of more than 60%. Ola’s strategy, experts said, of offering a range of offerings — including two-wheeler, e-rickshaw and auto rides — has paid off. The service also includes outstation journeys. It has over 9 lakh vehicles and operates in 115 cities.
According to Redseer Consulting, between December 2016 and December 2017, the number of daily rides on taxi-hailing applications increased by 50% from 1.37 million to 2.03 million. The share of pool rides went up by 27% during this period.