Ola raises $50 Mn from NY-based hedge fund, valuation to go over $3 billiom

Cab-hailing firm, Ola has reportedly picked up about $50 Mn funding from New York- based hedge fund Tekne Capital Management, as an extension of its ongoing round.

New York-based Tekne Capital was founded in 2012 by Beeneet Kothari. "Ola continues to be in talks with various investors, including Coatue Management for this round," sources revealed. The additional capital will push Ola's valuation to about $3.65 billion, and it will continue to raise capital.

In May 2017, Ola raised $104 Mn from RNT Capital and US-based hedge fund Falcon Edge Capital. In April 2017, it was reported that Ola was in talks to raise a $100 Mn funding. RNT Capital Advisors, a $300 Mn venture fund set up by Tata Sons Chairman Emeritus Ratan Tata, will invest around $60 Mn. The remaining amount will be infused by existing investor Falcon Edge Capital.

The funding momentum comes after Ola decided to raise capital at a lower valuation of $3 billion, from $4.5-5 billion in 2015, from SoftBank in November last year. The fundraising was the first down round - a term used to define fundraising at a lower valuation - for an Indian internet company valued over $1billion in the current cycle. Since then Ola has also started gaining back market share.

The company's plan to work closely with the government and introduce electric vehicles in cities like Nagpur is expected to boost prospects for the Indian company.