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Ola raises Rs 670 crore from Ratan Tata-backed fund

Ola raises $104mn from Ratan Tata-backed fund & Falcon Edge						
						Mobile						Start Ups															By:				CIOL Writers Ola raises $104mn from Ratan Tata-backed fund & Falcon Edge Mobile Start Ups By: CIOL Writers
Manuel Armenta | 04 May, 2017, 19:38

SoftBank-backed Ola has raised Rs 670 crore ($104.4 million) in fresh funding from investors including UC-RNT Fund, a venture between the University of California and Ratan Tata and hedge fund Falcon Edge.

RNT Capital invested about Rs 267.9 crore, while Falcon Edge, an existing investor in the company, put in another Rs 402 crore, the filings showed. The company's last fund raise, that saw it rake in $250 million from Softbank, held its value at $3 Billion. While Ola and Uber did not comment on the numbers, industry and company executives said Ola clocked about 6 million weekly rides on average between September and December previous year across its offerings of cabs, autorickshaws and shuttle buses, Mint reported on 17 February.

This round of funding comes close on the heels of United States dollars 250 million (Rs 1,675 crore) it received from SoftBank last month.

Ola reported seven-fold revenue growth in the year ended 31 March 2016, but losses almost tripled at India's largest cab hailing start-up on the back of heavy discounts to customers and spending on incentives to its drivers.

The investments follow rumors from earlier in the month, in which it was said that the company was planing to raise $100 million from Falcon and Tata at a $3.5 Billion valuation.

Ola issued 4.95 lakh shares at Rs 13,521 apiece.

As per the report, in the past, Ola raised $500 million in a Series F round from Scottish investment firm Baillie Gifford, China's Didi Chuxing and other investors in November 2015.

An email sent to Ola did not elicit a response at the time of publishing this story.

The company has raised $1.5 Billion to date from a clutch of investors, including the likes of SoftBank Group, Tiger Global, Matrix Partners, Steadview Capital, Sequoia India, Accel Partners US and Falcon Edge.

Ola has been burning a huge amount of cash to woo customers and gain market share in its bid to stave off competition from its San-Francisco-based rival Uber Technologies Inc. The company generated losses of well over 2,300 cores in the year that ended in March 2016.

Industry estimates place the India taxi aggregation market share of Ola at around 65 per cent, with Uber holding the rest.