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Flipkart Co-Founder Sachin Bansal Invests Rs. 650 Crore In Ola: Report

The resolution was passed at a board meeting of ANI Technologies, the entity that runs Ola, on January 12, according to the documents.

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Flipkart Co-Founder Sachin Bansal Invests Rs. 650 Crore In Ola: Report

Sachin Bansal left Flipkart last year after US-based Walmart picked up a majority stake in the company

Flipkart co-founder Sachin Bansal has pumped in about Rs 650 crore in ride-hailing platform Ola, news agency Press Trust of India reported, quoting documents filed with the Corporate Affairs Ministry. The investment from Mr Bansal comes as Ola is locked in a battle for market leadership with US-based rival Uber in India and other markets such as Australia, New Zealand and the UK. Mr Bansal quit the e-commerce major last year, after US-based Walmart acquired a majority stake in Flipkart in a $16-billion deal.
Here are 10 things to know:
  1. "...70,588 fully and compulsorily convertible, cumulative 'Series J' Preference Shares' having face value of Rs 10 having the rights, privileges and preferences... is hereby allotted at a subscription price of Rs 21,250," the documents showed, according to Press Trust of India. 
  2. That translates into an investment of about Rs 150 crore by Mr Bansal in the company. 
  3. Mr Bansal is pumping in Rs 650 crore in total, and the Rs 150 crore funding is part of the total investment, Press Trust of India reported citing sources.
  4. Mr Bansal left Flipkart last year after US retail giant Walmart picked up a 77 per cent stake in the Indian e-etailer for $16 billion.
  5. The resolution was passed at a board meeting of ANI Technologies - the entity which operates ride-hailing firm Ola - on January 12, the documents showed, according to the agency.
  6. In October 2017, Bengaluru-based Ola had announced raising $1.1 billion funding from China's Tencent Holdings and SoftBank Group.
  7. It had also stated that it was in "advanced talks" to close an additional $1 billion funding to take total mop-up to more than $2 billion.
  8. The allotment of these shares to Mr Bansal is part of Ola's plans to raise about $1 billion in funding, the sources added, according to Press Trust of India.
  9. Ola has been aggressively ramping up its rides business, platform and food delivery operations (through Foodpanda).
  10. The company had said in December that it would invest $100 million in scooter sharing start-up Vogo, to broaden the range of vehicles it offers.

(With agency inputs)



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