Raise when you can, not when you want. This has been the mantra for start-ups in the recent years and Ola is no different. Ola cabs now raising $500 million at a valuation of, wait for it, $5 billion!
Recently, the Ola founders had been named in the India Rich list as the youngest entrants and this news will probably push them a little more upwards. Ola cabs is competing in India with Uber which as we all know has plenty of cash to burn. This is probably a reason why existing and new investors do not want to be left behind due to a cash crunch & are pumping in more money.
This is a series F funding and if reports are to be believed this would mean that Ola has doubled its valuation since April this year when it raised $400 million at a valuation of $2.5 billion.
Transportation Industry has seen unprecedented growth in Asia with Uber on one hand expanding rapidly and also local entrants like online India and Didi Quaidi in China raising billions.The dream of all/transportation start-ups seems to be the same, move to a future where people don’t need to buy cars and instead can just call one when needed.