• Gwendolyn
  • 2018-03-06 16:24:50

Ola in talks with Temasek to fund its cash reserves

Taxi aggregator Ola is in talks with Singapore-based Temasek to add up to  USD 1 billion to its war chest, according to a report by The Economic Times.

The deal, expected to add USD 500 million-USD 1 billion to Ola's cash reserves, will value Ola at about USD 6-7 billion. The deal will include a secondary share sale, sources told The Economic Times.

Angel investor Rehan Yar Khan will be one of the selling shareholders, the report said. The other selling shareholders will include investors that got stocks in Ola after the company acquired Taxiforsure.

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The two companies are negotiating for both a primary stake and a secondary transaction, sources told The Economic Times.

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Ola and Temasek declined to comment on the share sale, the report said.

The addition of money to the war chest will help Ola compete with rival Uber.

Ola last year received funding of USD 1.1 billion from China's Tencent Holdings and Japan's Softbank Corp.

Softbank is Ola's largest investor. Softbank has also invested in San-Franciso based Uber and China's taxi app Didi Chuxing.

Last month, the tax-app company announced its entry into the Australian market. Ola has started services in Perth on a trial basis, marking its first overseas operations.