Ola, the Indian cab-hailing company has raised $50Mn in a fresh funding from two new investors – Hong Kong-based Sailing Capital and the China-Eurasian Economic Cooperation Fund (CEECF). After the funding, Ola is valued at around $4.5 Mn and the Chinese state fund along with Sailing Capital will own close to 1.2% stake in the Indian ride-hailing firm.
The CEECF was announced by Chinese President Xi Jinping in 2014, with an initial size of $1 billion, is a Chinese state-backed investment fund created to invest in projects in the countries of One Belt, One Road.
Sailing capital was founded in 2013 and is the first major private equity fund on the global stage with its initial capital raised domestically in Chinese Yuan. Sailing was initiated by Shanghai International Group (SIG) mainly for investment overseas. Sailing engages in direct investment and intends to establish industry-specific or geography-specific sub-funds to manage jointly with the key co-investor(s) in each. It has previously invested in startups like Coursera and Didi chuxing.
The Economic Times reported last month that Singapore’s sovereign wealth fund Temasek had invested as much as $225 million in Ola to pick up a high single digital stake in the company. The deal was said to have given exits to several early investors in Ola, including the buyback of employee stock ownership plan from some employees.
Ola is looking for money from new investors to reduce the power of its largest investor SoftBank, which now owns a little over 25 percent stake in the company and has invested around $8Bn till now.