Why Ola founder Bhavish Aggarwal turned down a US Dollar 1.1 billion SoftBank deal
SoftBank invested in the e-commerce startup about five years ago and then tried to push the founders to sell out to a larger rival, Flipkart. When Snapdeal refused the deal, Son switched allegiances by stopping further investment in the company and put $2.5 billion into Flipkart.
- Startups, when they raise venture money to build their businesses, begin with a Series A round and then proceed through Series E, F or maybe G before going public.
- The Japanese conglomerate, led by Masayoshi Son, was an early backer of Ola, but Aggarwal has grown concerned about its influence as SoftBank took a stake in his archrival, Uber Technologies Inc., and then encouraged the rivals to merge.
- Aggarwal avoids gatherings with Son and his portfolio companies when he visits India, according to people familiar with the matter.
- Saudi Arabia contributed nearly half of the capital for Son's $100 billion Vision Fund.