Uber's India rival Ola seeking funds at 40% lower valuation: source

Bengaluru

INDIA'S foremost ride-hailing service Ola is pursuing a new round of funding that would give the company a 40 per cent lower valuation than it had a year ago, according to a person with direct knowledge of the matter, as the startup tries to amass capital to stave off a challenge from Uber Technologies Inc.

The company is raising funds that value the company at US$3 billion, a sharp reduction from the US$5 billion figure during a previous financing round in November 2015. At the time it made Ola one of the nation's four most valuable startups, alongside online retailers Flipkart and Snapdeal and digital payments operator Paytm.