Bangalore/IBNS: India's ride hailing company Ola secured a USD 500 million loan from international institutional investors to proliferate mobility across ride hailing, vehicle commerce, delivery with foods, quick commerce and financial services sectors.
Ola raised the money through the Term Loan B route joining Indian companies like Byju's and Oyo.
“The overwhelming response to our term loan B is a reflection of the strength of our business and our continued focus on improving unit economics alongside rapid growth. At Ola, we are accelerating our journey towards building the New Mobility ecosystem to help a billion people move sustainably,” said the company's top echelon.
The ride hailing company also has plans to raise USD 1 billion with an Initial Public Offering (IPO) next year.
Earlier this financial year, Ola's CEO Bhavish Aggarwal mentioned plans to launch an IPO in the first half of 2022, Reuters reported.
The recent revelation comes soon after the Bangalore-based company started delivering its electric scooter from Dec.15.
The company has met with criticism from customers due to untimely deliveries of scooters, after selling Rs 1,200 crore worth two wheelers in Sept. this year, Moneycontrol reported.
The majority shareholder in India's ride-hailing market has also garnered USD 139 million through investor groups like IIFL, Edelweiss, and Hero enterprise, Moneycontrol reported on Dec. 9.
Hero Enterprise has pumped in Rs 112.5 crore, Edelweiss has lent Rs 250 crore, and IIFL has backed the firm with Rs 187.5 crore, it reported.
The company has recently allotted shares to former Zandu promoters Parikh family and Siddhant Partners worth Rs 100 crore.
Biovet, an animal health vaccine producing firm, has been allotted shares valuing Rs 50 crore.
Other firms that have been allotted shares include Famy Care Group with Rs 13 crore shares apiece, and Vicco Group with shares worth Rs 10 crore.
In July, Ola had raised $500 million financing led by Temasek and Warburg Pincus.
Recently, Bhavish Aggrawal stated plans to list its electric vehicle business in the foreseeable future, reported Reuters.
Ola Electric raised about USD 52.7 million from investors- Temasek, IIFL, Edelweiss, VSS Investco and DST Global's Rahul Mehta few months after raising USD 200 million led by Falcon Edge, SoftBank amongst others at a valuation of USD 3 billion in Sept.
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