IPO bound Ola raises Rs 150 crore in latest funding round

The new round of investment for Ola comes as the firm prepares to go public this year through an initial public offering (IPO).

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According to VCCircle’s examination of regulatory documents, cab ride-hailing aggregator Ola Cabs, owned by ANI Technologies Pvt Ltd, has secured Rs 150 crore in its current Series J round from Axis Growth Avenues AIF and Arrow Multi-Asset Fund.

In order to finance Rs 150 crore, Ola issued 66,268 Series J1 preference shares at a price of Rs 22,635 per share. According to the documents, Axis Growth Avenues AIF has invested Rs 112.5 crore in this tranche, while Arrow Multi has deposited Rs 37.5 crore.

Ola previously raised Rs 1,049 crore ($139 million) from 25 investors as part of its Series J round in December 2021 by issuing 4,63,471 cumulative series preference J1 shares at a premium of Rs 22,625 per share, at a valuation of $6.6 billion. In the same month, it obtained $500 million from prestigious worldwide institutional investors through a Term Loan B (TLB).

The most recent round of funding is expected to fetch a valuation of more than $7 billion.

The new round of investment for Ola comes as the firm prepares to go public this year through an initial public offering (IPO). Last year, Zomato became the first tech unicorn to list on a domestic market. Paytm, MobiKwik, PolicyBazaar, and Nykaa were among the tech unicorns added to the list in 2021.

Ola was initiated in 2010 by Bhavish Aggarwal and Ankit Bhati, the current chairman and Group CEO of Ola (Co-founder and CTO). It presently operates at over 250 sites in India, Australia, New Zealand, and the United Kingdom.

The company’s electric vehicle (EV) segment received $53 million in funding, valuing it at over $2.3 billion. Temasek, a Temasek stakeholder, invested Rs 185.71 crore in Ola Electric. IIFL and Edelweiss each contributed Rs 74 crore and Rs 111 crore through their pre-IPO financing.

In a separate filing, Ola announced the completion of its acquisition of GeoSpoc, a supplier of geospatial services, for Rs 26 crore. The business announced the acquisition last month but provided no further details.

Ola’s operational revenue declined by 63 percent to Rs. 983.2 crore in the fiscal year ended March 31, 2021. During the same time period, the corporation reduced its losses by 49 percent to Rs. 1,116 crore.

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