Sachin Bansal, a co-founder of Flipkart, is currently in negotiations to sell his share of the ride-hailing business. In 2019, Bansal made his largest personal startup investment of $100 million in Ola.
Private investors and family offices are involved in the talks, but Ola's valuation will determine whether the purchase is finalized.
With a price estimated at about $4 billion, the sale is contingent upon Bansal expecting a premium. Although specifics were not made public, Ola was thought to be worth about $3 billion at the time of his 2019 investment.
According to reports, Bansal has discussed the possible stake sale with Bhavish Aggarwal, the founder of Ola. Both have a track record of developing enterprises that compete with large US giants such as Amazon and Uber in the Indian marketplace.
Shift in focus to Navi
Bansal's decision to sell his Ola stake coincides with his shifting focus to Navi, his fintech startup. He has spent the past year integrating Navi's resources while seeking external finance for the firm.
According to the report, the monies gained from the Ola stock sale could be utilized to improve Navi's financial situation.
This decision comes after Bansal sold his interest in Ather Energy, an electric scooter startup, to Zerodha co-founder Nikhil Kamath.
Regulatory obstacles for Navi
Navi has faced regulatory hurdles, including a temporary lending restriction imposed by the Reserve Bank of India (RBI) on its non-banking financial business, Navi Finserv. Although the embargo was abolished in December 2024, previous attempts to acquire funds from Temasek failed after Navi was denied a banking license.
Despite these challenges, Bansal allegedly explored seeking funding for Navi at a $2 billion valuation in April 2024. He has already committed a considerable chunk of his personal wealth in the financial business, having made $1 billion from his Flipkart exit in 2018.
Ola’s nearing IPO
Ola, which is owned by Bengaluru-based ANI Technologies, is planning for an IPO, most likely in the next fiscal year ending March 2026. Existing investors are in talks with the company about selling shares during the public offering.
However, Ola's valuation has dropped dramatically in recent years. As of August 2024, Vanguard valued the company at $2 billion, a significant decrease from its $7.3 billion peak in 2021. According to the research, factors contributing to the fall include commercial issues during the epidemic and a rebranding drive to present Ola as a larger consumer internet company.
Ola's activities have been diversifying, with efforts into food and grocery delivery via the Open Network for Digital Commerce (ONDC) and the creation of dark shop services to capitalize on India's quick-commerce sector.
Despite these efforts, ANI Technologies recorded a loss of Rs 1,082 crore in FY23, albeit substantially lower than the previous year. The company's revenue increased by 58% to Rs 2,135 crore during the same period. The financial reports for FY24 have yet to be reported with the Registrar of Companies.
