The ban on taxi aggregators can put at risk investments of at least Rs 2000 crore, made by private equity (PE) and venture capital (VC) investors.
The ban on taxi aggregators, such as Uber, Ola Cabs and TaxiForSure, will hurt as they cannot operate in the manner they have been doing so far, without the requisite permits in states.
Among the aggregators, Ola Cabs has received the highest investment since its launch in 2011. About $280-million worth of PE/VC investment had been taken place in Ola so far.
In its latest fundraising, Ola Cabs had raised $210 million (about Rs 1,260 crore) in October from a group of investors led by Japanese telecom and media group SoftBank Corp.
This Series-D funding is the largest single round of fundraising by the company so far. Apart from SoftBank Corp, the latest round also saw participation from Ola's existing investors, Tiger Global, Matrix Partners India and Steadview Capital.
Image: Policemen escort driver Shiv Kumar Yadav (seen in this picture in a black jacket in the center) outside a court in New Delhi December 8, 2014. Yadav, a driver for taxi aggregator Uber, is accused of raping one of his passengers.
Text: Reghu Balakrishnan, Business Standard
Images courtesy: Reuters