Mobility unicorn Ola raises $500 million through Term Loan B
- ByTejika Bajaj | December 17, 2021
The IPO bound mobility unicorn Ola recently announced that it has successfully raised $500 million through its Term Loan B from a series of marquee international investors. This term loan has no impact on the valuation of Bhavish Aggarwal-led Ola.
The mobility startup said the proposed loan issuance received a staggering response from investors with interest and commitment of approximately $1.5 billion. A term loan provides borrowers with a lump sum of cash upfront in exchange for specific borrowing terms. Term loans are commonly granted to small businesses that need cash to purchase equipment, a new building for their production processes, or any other fixed assets, according to experts.
Commenting upon the recent loan issuance and its significance, the founder and CEO of Ola, Bhavish Aggarwal said, “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.”
SoftBank-backed Ola said this is a milestone transaction as Ola is among only a few Indian companies to raise capital through the TLB route. Ola is expected to utilize the term loan to fuel its vision for the future of mobility across its various businesses including ride-hailing, vehicle commerce, delivery with foods, quick commerce and financial services.
JP Morgan and Deutsche Bank served as the joint lead arrangers for this financing.
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