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:
- "...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.
- That translates into an investment of about Rs 150 crore by Mr Bansal in the company.
- 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.
- 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.
- 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.
- In October 2017, Bengaluru-based Ola had announced raising $1.1 billion funding from China's Tencent Holdings and SoftBank Group.
- 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.
- 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.
- Ola has been aggressively ramping up its rides business, platform and food delivery operations (through Foodpanda).
- 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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