Olacabs may buy out TaxiForSure for Rs 1,250 crNew Delhi: Online cab booking service Olacabs, run by Mumbai-based ANI Technologies Pvt Ltd., is in advance talks to acquire Bangalore-based Serendipity Infolabs Pvt Ltd which runs rival service TaxiForSure, media reports suggest.The deal, estimated
New Delhi: Online cab booking service Olacabs, run by Mumbai-based ANI Technologies Pvt Ltd., is in advance talks to acquire Bangalore-based Serendipity Infolabs Pvt Ltd which runs rival service TaxiForSure, media reports suggest.
The deal, estimated at $200 million (Rs 1,250 crore), will make Olacabs a formidable competitor to Uber in the India's taxi aggregation market.
The deal, which values the company at $2 billion, will be the second largest deal in the consumer internet space after Flipkart's $370 million acquisition of Myntra.
Media reports suggest that the deal has been finalised in terms of cash and stock, and will be soon announced in the coming weeks. TaxiforSure investors may get stocks in Olacabs after acquisition.
TaxiforSure began operations in 2011 and is now spread across 36 cities in India. The company has raised $60 million in funding from international players like Accel Partners and Bessemer Venture Partners, and was looking to raise fresh funds. When the offer was made by Olacabs, TaxiforSure opted for a complete buyout.
In the competitive on-demand taxi business, Olacabs has a slight edge over Uber. While Uber will have to now introduce physical offices and customer care centres to operate under the license, Olacabs already has that base covered. It even has a fleet of registered taxis in the city.