Homegrown cab hailing service provider Ola, is all set to raise an additional Rs 232 crore ($36 million) funding from existing investors. This was revealed through the company’s filings with the Registrar of Companies.
As per the report from VCCirlce, the decision to raise the additional funds was effected by way of a board resolution held on May 29 this year. However, it is not yet known which existing investors will be participating in this new round.
Ola will issue 1,71,733 shares with a face value of Rs 10 and a premium value of Rs 13,511 a piece, taking the total subscription price to Rs 13,521.
This is the same subscription price at which it allocated shares in its most recent funding round, where it raised Rs 670 crore ($104.4 million) from Falcon Edge Capital and Ratan Tata’s RNT Capital Advisers. It was followed by an increase in the authorised share capital from Rs 5,587.6 crore to Rs 5,587.8 crore.
Founded by Bhavish Aggarwal and Ankit Bhati in the year 2010, Ola has been backed by marquee investors such as SoftBank, Tiger Global and Matrix Partners, among others.
The startup has been burning significant amount of cash in order to woo customers and gain market share. It is trying to grab the lead position in the on-demand cab-hailing market of India, and is competing against its San Francisco based rival Uber.
Ola has reported a three-fold rise in consolidated net loss to Rs 2,311.7 crore for 2015-16. Its total expenditure surged to Rs 3,078.19 crore from Rs 899.7 crore. Its operating revenue jumped to Rs 438.6 crore from Rs 57.5 crore.