Indian taxi giant Olacabs may buy TaxiForSure very soon. The acquisition is expected to be valued at $250 million. The deal will certainly give an upper edge to Olacabs to boost competing strategies against Uber, which is currently the dominant player among taxi aggregators.
Co-founded by IIT-Bombay graduates Bhavish Aggarwal and Ankit Bhati in 2010, Olacabs is backed by Japanese telecommunications and Internet giant, SoftBank. During the course of a four year journey Olacabs has joined its own way of becoming one of the most affordable taxi service in the country.
The deal, if gets completed, will give Online consumer sector its second highest Merger & Acquisition buyout in Online consumer sector after the last year acquisition of Fashion e-tailor Myntra by Flipkkart at $370 million.
Financial proceedings of the deal are said to be a mix of cash and stock offerings. However, an official announcement is yet to come out.
Run by Serendipity Infolabs, and co-founded by IIM-A alumnus Aprameya Radhakrishna and Raghunandan, TaxiForSure recently raised $6 million in a bridge round from the existing investors Accel Partners India, Accel Partners US and Helion Venture Partners to stay tight in the competition, marking the total raised funding figure to over $64 million. After the bridge round company is approximately valued at $125 million.
This Bengaluru based startup operates in 44 Indian cities accounting around 20k rides per day, where as Olacabs has always been on higher note when it comes to numbers. Having received a total of $276 million of Funding, it operates in 67 cities across the country accounting more than 2 lakhs rides.
Similar in the concept to other rivals, TaxiForSure and Olacabs both do not operate on their own vehicles, instead provide technological background to connect customers to the drivers.
The deal is believed to be a strengthening boost to create the local cab services major valued at over $2 billion and will add a lot to its future strategies.