Olacabs may shell out $250m for TaxiForSure - In what may turn out to be the- Navbharat Times Photodhamal

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In what may turn out to be the first big consolidation move in the tech-backed cab services market, Bengaluru-based Olacabs is close to buying out cross-town rival TaxiForSure for an estimated $200-250 million, sources close to the discussions told TOI.

In This Pic : Olacabs may shell out $250m for TaxiForSure

Pic Courtesy : BCCL

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The deal, a mix of cash and stock, is already sealed and a formal announcement to this effect could be made in the next few weeks, the sources said. Backed by Japan's SoftBank, Ola's acquisition of the four-year-old startup will make the combined entity a clear leader in India's fast-growing cab aggregation market, giving it a significant leg up over Uber.

In This Pic : Olacabs may shell out $250m for TaxiForSure

Pic Courtesy : BCCL

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The deal, once it goes through, will also be the biggest M&A in the red-hot consumer internet sector after Flipkart's $330-million acquisition of fashion e-tailer Myntra last year, first reported by this newspaper.

In This Pic : Olacabs may shell out $250m for TaxiForSure

Pic Courtesy : BCCL

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Myriad investors have lined up to get a slice of India's digital story, backed by the explosive growth of mobile internet, which saw more than $4 billion in investor money being funneled into early and late stage startups.

In This Pic : Olacabs may shell out $250m for TaxiForSure

Pic Courtesy : BCCL

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TaxiForSure, which has raised more than $60 million from risk investors, had been scouting for fresh capital but opted for a complete sale. The existing investors also preferred a consolidation deal in a cash-guzzling sector with raging fare wars. TaxiForSure's investors, which include the likes of Silicon Valley funds Accel Partners and Bessemer Venture Partners, among others, may get Ola stocks post the acquisition.

In This Pic : Olacabs may shell out $250m for TaxiForSure

Pic Courtesy : BCCL