Japanese investor SoftBank has pumped in about Rs 1,675 crore in fresh funding in Indian transportation start-up Ola to give it more muscle to take the American rival Uber head-on.
SoftBank subsidiary SIMI Pacific Pte has picked up 12,97,945 shares valued at Rs 10 at a premium of Rs 12,895 in ANI Technologies —— which runs Ola —— filings with the Registrar of Companies showed.
The allotment of shares was done in November last year, it added.
The latest funding, however, is believed to have come at a lower valuation.
According to sources, the move comes at a time when Softbank is working on selling Snapdeal, an e-commerce platform it invested heavily in India, to larger rival Flipkart.
The Bengaluru-based firm was aggressively looking at raising funds to compete with Uber, the world’s most valuable start-up. After selling its Chinese business to Didi last year, Uber has now set sights on India making it one of its top priorities.
Though Indian Internet companies have seen a boom in user base, their valuations have come down as investors are now focussing on path to profitability and building a sustainable business model. Flush with private equity and venture capitalist money, many start-ups continue to have high burn rate that has been a concern for investors.
Earlier this week, India’s largest e-commerce firm Flipkart had raised $1.4 billion from Tencent, eBay and Microsoft in a round that saw its valuation fall from $15 billion to $11.6 billion now.