Ola Secures $100 Million to shape up its expansion plans. The fund is to come from the existing shareholders of the taxi hailing company.
ANI Technologies which runs and operates Ola disclosed the approval yesterday. Ola Secures $100 Million, the board has agreed upon raising $100 million by an issue of 495,526 Series ‘l1’ preference shares. These shares possess face values of Rs 10 each. Also, the price per subscription shares comes out to be Rs 13,521.
As per the reports, the approval of funding relates to the issuance of convertible securities priced at Rs. 13,521 per share to a rights issue. The filing to the Corporate Affairs Ministry of India reveals the date of the rights issue to be March 23, 2017. As of now, there’s no clue about the amount that the company is to raise through the issue. The company is also taking the support of innovations like electric vehicles just be ahead of Uber in the race of being the king of cabs.
Ola’s business in India faces an uptight competition with the Uber. Also, the American taxi hiring firm recently raised funds from the one of the biggest investors in Japan, the SoftBank. Uber has already sold its China business to its nearest rival Didi. So the rival now is all set to focus its growth in India. India seems right on top of Uber’s priority list. Uber has spent huge some for the development of its operations. Apart from that Uber is also trying to expand the circle of its driver partners in India.
Ola currently operates in 11o Indian cities. On the other hand, Uber intends to expand its services that currently stands at 29 Indian cities. Uber is very aggressive in its expansion campaign in India, and hence, quite a concern for Ola.
An inquiry sent to Ola evoked no acknowledgement. And when it comes to the filing, the company also revealed the purpose of the issue. In conclusion, Ola believes this issue would help the growth and expansion of Ola’s business in India.