Ola Financial Services curbs Avail Finance App, to integrate it with Ola Money
- ByStartupStory | January 11, 2023
According to ET, Ola Financial services have stopped lending to customers, primarily blue-collar workers, via the app of a recently acquired entity Avail Finance.
Ola is discontinuing its recently acquired Avail Finance App in favor of integrating it into Ola Money. Furthermore, as part of its integration plan with Ola Money, Ola Financial Services has stopped lending to customers through Avail Finance, according to the report.
The decision is said to have been made because Ola has been closing down verticals that are losing cash flow in its consolidation. In 2022, the company will cease operations of its infotainment service Ola Play, used car platform Ola Cars, and quick commerce vertical Ola Dash.
“Avail’s services have been integrated with Ola Financial Services. We are now offering products and services to drivers and customers through Ola Financial Services,” the company said in a statement.
Tushar Mehndiratta and Ankush Aggarwal, the brothers of Ola founder Bhavish Aggarwal, founded Avail Finance, which was acquired by Ola in March 2022 for approximately $50 million.
Avail Finance provides short-term loans to India’s blue-collar workforce, including gig workers. According to reports, the startup offered loans starting at Rs 5,000 and an advance salary of up to Rs 10,000.
Ola Financial Services offers fintech services to Ola entities, such as Ola Money, an e-wallet service for mobility customers.
Avail Finance stopped giving loans in December 2022. According to the report, only loan collection will take place throughout the year, as the lending vertical only offered one-year loans that will be completed in December 2023
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