India’s largest ride-hailing app Ola is preparing to bite the bullet and accept fresh funding at a lower valuation as it seeks to shore up capital required to fend off challenge from rival Uber, the world’s most valuable startup.

The fund-raising, when goes through, maybe the first ‘down round’ in the country for a unicorn, or a startup valued at over a billion dollars. In a down round, the valuation at which the company raises money from investors is lower than its valuation in the previous round of fund-raising.

The company is being valued at anywhere between $3 billion and $4 billion in its latest round of funding led by existing investor Japan’s SoftBank, according to five people aware of the developments. Ola, which still remains the leader in the ride-hailing space with about 60% market share, was last valued at $5 billion when it raised $500 million in November 2015.

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