Singapore-based Temasek Holdings has acquired a large single-digit stake in India’s leading cab-hailing startup Ola, for about ₹1,545 crores ($225 million).
The stakes were purchased from a clutch of early investors in the startup, Temasek is also in talks with Ola’s management to pump in more money into the startup by way of subscription of new shares.
The fresh investment will enable Ola founder & CEO Bhavish Aggarwal to diversify startup’s shareholder base, according to people aware of the development.
“Temasek has come in as a white knight in the company both because this will help Bhavish ensure there is more bandwidth on the board and also because as a strong sponsor they have the ability to pump in more funds,” according to an industry executive.
It is anticipated that some Ola employees are expected to sell some of their shares as a part of this round, in addition to angel investor Rehan Yar Khan, along with venture capital investors who received shares in Ola after it acquired TaxiForSure in 2015. These venture capital investors include Accel India, Bessemer Venture Partners, Helion Venture Partners, and TaxiForSure partners Aprameya Radhakrishna and Raghunandan G.
The recent news comes after Ola expanded its business to the UK market, after receiving licenses to operate in South Wales and Great Manchester. It will be starting its UK business as it launches operations in South Wales next month.
Last month, Ola had reported that it was now making money on every ride, as it eyes profitability. It had also expanded to Australia, earlier this year.
Ola has stayed on a growth trajectory, even as it competes with another leading cab-hailing service provider Uber. Ola has strengthened its foothold in India, and it is now set to compete with Uber on a global scale.
Ola had last raised ₹7,172 crores ($1.1 billion) in a private equity round led by Softbank and Tencent Holdings in October 2017.