The money starts to flow from the largest start-up exit in India. Ola added an important name to the current financing round after it confirmed that Flipkart co-founder Sachin Bansal has invested 650 crore-INR (about $ 92 million) in the Indian shipping industry.
The deal passed in January, when Paper.vc, an intelligence service sifting through company records in India, commented that Bansal had committed to investing 150 crores. Today, eight-year-old Ola not only confirmed the link, but it revealed that the actual size of Bansal's investment is significantly higher. It represents his most prominent and largest investment to date, and his first major deal since he left Flipkart after selling to Walmart for $ 16 billion last year.
TechCrunch understands that Bansal will not play an advisory role and will not be involved in operations.
The investment is part of a running Series J financing round that is likely to exceed $ 1 billion and would appreciate Ola, who fiercely competes with Uber in India, around $ 6 billion. Bansal's commitment comes one month after the existing investor Steadview Capital has invested $ 75 million in the round.
This is what Bansal – who Flipkart started in 2007 with co-founder Binny Bansal – had to say about the deal:
Ola is one of India & # 39; s most promising consumer companies, which creates a deep impact and lasting value for the ecosystem. On the one hand, they have emerged as a global force in the mobility space and on the other hand they continue to build deeper on the different needs of a billion Indians through their platform and they now become familiar household names.
I have known Bhavish as an entrepreneur and as a friend in these years and I have great respect for what he and Ola's team have built in just 8 years! I am personally very pleased to be part of the Ola trip and I look forward to contributing to their success.
Aggarwal, CEO of Ola, has in turn praised Bansal as "an icon of entrepreneurship."
"His investment is a huge encouragement for all of us at Ola and our mission to serve one billion people," he said in a statement. "I personally look forward to learning from Sachin's journey, mentoring and guidance, because we want to build one of the most impactful global companies in India."
Ola is locked up in a dog fight with Uber, making India his highest priority market outside the US. Uber started slowly in India, but it is pushing hard in the country after it has opened a special local R & D center and hired a land management team operating outside the rest of its business in the Asia Pacific.
To combat its American rival, Ola has expanded the whole country to include more than 100 towns and villages. It has also gone further than just cars, developed its own mobile money service, invested in other startups and drove other strategies to appeal to local customers.
The exit money from Flipkart can go back to the ecosystem, but the company runs away without the two men who founded it. Sachin Bansal moved around the moment of the deal while Binny Bansal (the two are no relatives) resigned after an incident of "serious personal misconduct" just months after the Walmart acquisition was completed.
Binny has set up a fund – expects more Walmart capital to flow back to Indian startups – but his latest project is a company focused on helping the most promising founders of India to scale their businesses.