Ola just secured $139 million from Edelweiss and other investors at a value of more than $7 billion in a round of financing.
According to reliable sources, Ola is in discussions to raise around $1 billion in the coming months via a combination of stock and debt financing as the ride-hailing platform gears up to go public next year.
Edelweiss and others recently invested $139 million in the firm at a value of more than $7 billion.
At a value of $7.5 billion, sources say that pre-IPO financing for Ola might total more than $1 billion. There would be a blend of stock and debt in the several tranches of the capital raising, they said. Emails sent to Ola went unanswered.
It’s part of a wider fundraising round, and the $139 million equity capital would be used to support expansion in the new mobility ecosystem, they added. Ola is also considering acquiring $500 million from global institutional investors through a Term Loan (TLB). Ratings from S&P Global and Moody’s have recently given it a B3 credit grade with a stable outlook.
Edelweiss and others have invested a total of 1,049.06 crore in Ola (ANI Technologies), putting the company’s value at more than $7 billion, according to a regulatory filing. As well as Siddhant Partners, Hero Enterprise Partner Ventures and Vicco Laboratories were some of the other investors that participated in this round of investment.
Shares of Ola’s Series J1 were sold at a premium of 22,625 per share, according to the company’s filings. There is no definite timeframe for the company’s IPO, although co-founder Bhavish Aggarwal indicated earlier this year that Ola is contemplating a public offering sometime in 2022.
SoftBank, Tiger Global and Steadview Capital will be able to exit or partly sell their stakes in Ola to repay monies to its shareholders via an IPO. OLA provides transportation services in India, the United Kingdom, Australia, and New Zealand. It was founded by Bhavish Aggarwal and Ankit Bhati in 2011. A total of $4 billion has been invested in it so far.
Ola stated in July that Temasek, Warburg Pincus subsidiary Plum Wood Investment, and Bhavish Aggarwal had invested $500 million (approximately 3,733 crore) in the company.
