Ola cabs is in talks to acquire TaxiForSure for around $200 million. But as per the report of NextBigWhat, this deal may be valued at $450mn – with a mix of cash and equity. Ola is also in talks to raise around $500 million to reach $3 billion valuation.
According to people involved in the deal, Ola cabs will paycash and offer stock. If this deal becomes successful, it can be one of the largest buyout in Internet market after Flipkart’s acquisition Myntra for $370.
Aim of the deal is the combine the forc to take on Uber which is valued at $40 bilion and now focusing more in Indian market. Although, Uber faced problem in India due to criminal case in Delhi, but it has enough money to promote its service in large scale in India.
Olacabs was founded by IIT-Bombay alumnus Bhavish Aggarwal and his collegemate Ankit Bhati. Olacabs also received $210 million funding led by SoftBank.
Source: ET
