Sachin Bansal, co-founder of Flipkart, is reportedly in discussions to sell his $100 million stake in ride-hailing giant Ola, co-founded by Bhavish Aggarwal. This move comes as Bansal aims to channel the proceeds into his fintech startup, Navi, which has been facing regulatory challenges.
Stake Sale Details
Bansal’s investment in Ola dates back to 2019, when he invested $100 million at a valuation of approximately $3 billion. Now, he is looking to sell his stake at a premium valuation of around $4 billion, reflecting a significant increase in the company’s worth since his initial investment. The negotiations for the sale are reportedly being held with several large family offices and private investment firms.
A source familiar with the discussions noted, “The idea being this could be an entry in Ola right before the IPO, but the valuation at which Bansal agrees will be key to the deal.” Bansal has previously sold his stake in Ather Energy to Zerodha co-founder Nikhil Kamath, indicating a strategic shift towards consolidating resources for Navi.
Focus on Navi
Bansal’s decision to divest from Ola aligns with his increasing focus on Navi, which aims to expand its services in the fintech sector. Over the past year, he has been consolidating resources for Navi while exploring external fundraising options. However, Navi has faced regulatory hurdles, including a temporary ban on lending imposed by the Reserve Bank of India (RBI) due to high interest rates. This restriction was lifted in December 2024.
Despite these challenges, Bansal is optimistic about raising funds for Navi and has already invested a significant portion of his wealth into the startup since selling his stake in Flipkart to Walmart for $1 billion in 2018.
Ola’s Upcoming IPO
Ola is preparing for an initial public offering (IPO), likely within the next financial year ending March 2026. The company has seen fluctuations in its valuation, with Vanguard valuing it at $2 billion as of August 2024, down from a peak of $7.3 billion in 2021. This decline can be attributed to various challenges faced during the pandemic and ongoing efforts to diversify its operations.
As Ola gears up for its IPO, existing investors are keenly interested in understanding the company’s plans regarding share offerings and how they might impact their investments.
Conclusion
Sachin Bansal’s potential sale of his stake in Ola marks a significant moment as he shifts focus towards enhancing the growth prospects of Navi. With regulatory challenges behind him and an IPO on the horizon for Ola, both companies are poised for critical developments in the coming months.
Disclaimer
This article is based on information available as of January 7, 2025. Updates will follow as new developments arise regarding Sachin Bansal’s stake sale and Ola’s IPO plans.
In summary, as Sachin Bansal navigates this transition from Ola to Navi, stakeholders will be watching closely to see how these strategic moves unfold within India’s dynamic startup ecosystem.
