July 22, 2017

Fearing loss of control over company, Ola changes rules to give more powers to founders

Ola founders
Image Courtesy of Ola

Experts are of the view that the changes reflect the concern among founders about losing control of their companies to deep-pocketed investors. BENGALURU: Ride-hailing app Ola has modified some of the regulatory terms that define its operations in a move that grants greater control to the company’s founders while curtailing the influence of investors, including its biggest stakeholder, Japan’s telecom and Internet conglomerate SoftBank Corp.

The set of changes to the articles of association — a document that specifies the regulations for a company’s operations — was made by ANI Technologies Private Ltd, which owns and operates Ola, after the company raised additional capital from SoftBank at the end of 2016. According to the amended terms, SoftBank and its affiliates need the approval of Ola’s founders — Bhavish Aggarwal and Ankit Bhati — as well as the consent of the company’s board to purchase any additional shares of the company from other stakeholders.

SoftBank will own over 30% stake in Ola after the last financing round, which also marked a dip in valuation for the seven-year-old company to $3 billion from a high of $5 billion.

But the funding round also brought in much-needed capital for Ola to battle the might of […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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