Ola To Raise Over $1 Billion Through Equity, Debt In Pre-IPO Round
According to sources, Ola is in talks to raise over $1 billion in capital over the next several months using a mix of equity and debt as the ride-hailing app prepares to go public next year.
The company has received over Rs 1,049 crore (about $139 million) from Edelweiss and others, valuing it at more than $7 billion.
Ola is reportedly in talks to raise around $1 billion in a pre-IPO transaction at a valuation of $7.5 billion, according to sources. They said that the capital raising will be a mix of equity and debt, and that it would be done in many tranches. Ola did not respond to an emailed request for comment.According to them, the $139 million in equity capital raised is part of a larger round, and the revenues will be used to fund important development areas in the new mobility ecosystem. Ola is also trying to raise $500 million from global institutional investors via a Term Loan (TLB). S&P Global recently assigned it a B-rating, and Moody’s assigned it a B3 credit rating with a stable outlook.
Edelweiss and others have invested 1,049.06 crore, valuing the company at nearly $7 billion, according to a regulatory filing filed by Ola (ANI Technologies) with the Registrar of Companies. Alka PN Family Trust, Atul DP Family Trust, Siddhant Partners, Hero Enterprise Partner Ventures, and Vicco Laboratories are among the other investors in this round.
Ola has allotted a total of 4,63,471 Series J1 shares at a premium of 22,625 per share, according to the documents. Bhavish Aggarwal, a co-founder of Ola, said earlier this year that the business, which competes with Uber in the United States, is eyeing a public offering in 2022 but hasn’t established a date.Ola investors such as SoftBank, Tiger Global, and Steadview Capital will benefit from an IPO by being able to exit or partially sell their position in the company and repay funds to their shareholders. Ola was founded by Bhavish Aggarwal and Ankit Bhati in 2011 and provides services in India, Australia, New Zealand, and the United Kingdom. So far, it is projected that it has raised approximately $4 billion in capital.Temasek, Warburg Pincus affiliate Plum Wood Investment, and Bhavish Aggarwal announced a $500 million (about Rs 3,733 crore) investment in Ola in July.
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