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Sachin Bansal Plans to Sell Stake in Ola at $4 Billion Valuation Ahead of IPO

• ByStartupStory     |    January 7, 2025

Flipkart co-founder Sachin Bansal is reportedly planning to sell his stake in ride-hailing company Ola, which he acquired through a $100 million investment in 2019. The Economic Times reported Tuesday that the deal is being finalized based on valuation, with Bansal seeking a premium by valuing Ola at approximately $4 billion. This is a significant increase from the $3 billion valuation at the time of his investment.

Bansal and Ola co-founder Bhavish Aggarwal have shared a decade-long professional relationship, both having built their respective companies—Flipkart and Ola—to compete with global giants like Amazon and Uber.

Stake Sale Discussions

According to sources cited in the report, Bansal’s proposed stake sale is being discussed with large family offices and private investment units of investors active in public markets.

“Yes, the deal has come to us. The idea being this could be an entry in Ola right before the IPO, but valuation at which Bansal agrees will be key to the deal,” the report quoted a person who has reviewed the proposal.

Bansal is reportedly looking to redirect the funds from the sale into his fintech venture, Navi, which he has been focused on for the past year.

Navi’s Regulatory Hurdles

Navi has faced its share of challenges recently. In October, the Reserve Bank of India (RBI) restricted Navi Finserv, a subsidiary of Navi, from lending due to high interest rates. However, the restriction was lifted on December 2. Despite this, Navi is said to be exploring external fundraising options, though no decision has been finalized.

Recent Valuation of Ola

Ola, once valued at $7.3 billion in 2021, has seen a significant drop in valuation. In August 2024, Vanguard valued the company at $2 billion. This marks a steep decline despite Ola raising $139 million at its peak in 2021.

Bansal’s focus on Navi is evident as he recently sold his stake in another IPO-bound company, Ather Energy, to Zerodha co-founder Nikhil Kamath.

As discussions around the stake sale unfold, the potential entry into Ola ahead of its IPO could be a strategic move for investors, contingent on the valuation being agreeable to all parties involved.

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