Flipkart Co-Founder Sachin Bansal has invested about 650 crore in Ola cab riding service. This has put its contender Uber in a tough spot.
This happens to be Sachin’s personal investment and is the largest financing by an individual till date, the cab aggregate said in a statement. In January, Ola issued Rs 150 crore worth of shares as part of the J-round of funding.
Bhavish Aggarwal, co-founder and cheif executive officer of Ola has even said that Sachin Bansal has been an icon of entrepreneurship. His experience of building one of India’s most respectable business is unparalleled.
Sachin had founded Flipkart with Binny Bansal over a decade ago. They quit after Walmart bought a 77% stake in the company for a whopping $16 million dollars.
According to Sachin, Ola has been one of India’s most promising consumer businesses. It has created a deep and lasting impact on the ecosystem.
This investment is meant to raise Ola’s funding to $1 billion as part of their plans. In October last year, Ola got a $1.1 billion dollar funding from China’s Tencent Holdings and SoftBank Group.
Ola has also stated that it is in advanced talks to close an addition of $1 billion and totaling to more than $2 billion.
Ola has been in a tight sealed competition with Uber in India and other markets like Australia, New Zealand and the U.K.
This Indian company has been improving the experience of its food delivery app, Foodpanda.
In an interview with Times of India, Sachin Bansal spoke about the angel tax that has affected many start ups. He says, ” It is an unnecessary distraction. Small start ups don’t have resources or time to think about it. Bigger companies can still deal with it by hiring the right lawyers and the right set of experienced folks. I think some steps have been taken but they are not enough and more can be done.”
