Sachin Bansal to Invest $100 Million in Ola Cabs Business
Sachin Bansal who is cofounder at Flipkart, will be finalising in the Indian Internet space as he closes a funding of up to $100 million, or Rs 740 crore, in ride hailing company Ola. This was informed by people, who were familiar with the development. This would be the largest personal investment of Sachin Bansal.
His total capital commitment for the transportation app will constitute more than 10 of his personal wealth garnered from the Flipkart-Walmart deal this year.
Sachin exited the company he cofounded with Binny Bansal (not related) and sold his entire shareholding of 5.5% in Flipkart to Walmart. The US retail giant picked up a controlling stake of 77% in the ecommerce retailer, with Sachin Bansal pocketing around $1 billion from the share sale that closed in August.
However, Bansal has been an active investor in local startups since 2014, those investments were typically early-stage at $1-2 million.
Here is what Sachin Bansal and CEO of Ola, Bhavish Aggarwal has to say on the development.
Bansal’s investment in the Bengaluru-based cab aggregator, sources said, will be largely through subscription of new shares of Ola, with a small component coming through a secondary sale by existing investors. Ola’s valuation has ranged between $3 billion and $4.5 billion across secondary and primary transactions that have taken place in the past year, and is expected to be similar for this deal.