Singapore-based holdings company, Temasek has agreed to back the founders of Ola to strengthen their position in the company even further. The company has also agreed to vote along with the co-founders of Ola as a part of the recently structured secondary subscription of shares. Economic Times had earlier reported that Temasek is buying about 5% stake in Ola’s parent company, ANI Technologies, for about $150 million to $200 million.
Temasek’s backing is vital for Ola’s founders, Bhavish Aggarwal and Ankit Bhati, as it allows them to solidify their position in the company. Moreover, this will also allow them to veto any additional acquisition of stakes in the company by SoftBank, the current largest stakeholder in Ola.
As a part of the deal, Temasek will vote with Ola founders in any issue concerning the company. This deal is subject to approval from the Competition Commission of India (CCI) and other statutory bodies. ANI Technologies has already filed for approval from CCI regarding this deal.
SoftBank is currently the single largest stakeholder in Ola with 26% stake in the company. SoftBank is also the largest investor in Ola’s main rival Uber. Since there is no single majority stakeholder in the company, voting rights is essential when it comes to making decisions on major issues.
Among the other major stakeholders in Ola, Tiger Global Management owns about 16% of the company, Chinese conglomerate Tencent owns about 10.4% shares in the company, venture capital firm Matrix Partners India holds 8.6% stake, and DST Global holds over 8% stake. DST Global has already given its voting rights to the company’s founders.
Temasek is a sovereign wealth fund based in Singapore. The company currently manages assets worth over $225 billion in different parts of the world. Sources indicate that Temasek is expected to invest further in Ola in the upcoming rounds of investment.
Source: Economic Times