India Roundup: IPO-bound Ola posts first operating profit, and more (Updated)

Update (November 2, 7 p.m. SGT): Adds news on Ola

IPO-bound Ola posts first operating profit

• Ola reported a standalone operating profit of US$12 million for the financial year ended March 2021, compared with a loss of US$81.6 million a year ago.
• The company turned profitable at an operating level with the help of aggressive cost cuts and a reduction in its workforce, despite a 65% decline in revenue in the previous year.
• The ride-hailing aggregator is looking to raise up to US$2 billion from its initial public offering early next year. The company will raise half of the targeted capital through the issuance of primary shares, and the remaining through an offer for sale by some early investors.

SoftBank to sell stake in Delhivery’s US$1 billion IPO

• Existing investors that include SoftBank, Carlyle, Times Internet, and Fosun will reportedly sell shares worth US$334 million in a secondary sale.
• While Carlyle will supposedly liquidate shares worth US$100 million, SoftBank Vision Fund and Times Internet may sell an additional US$100 million and US$50 million, respectively. Meanwhile, Fosun could make a complete exit via the offer for sale process.
• Delhivery aims to list on the local stock exchange by early next year at a valuation in the range of US$6 billion to US$6.5 billion. (Read: The leading Asian tech players eyeing an IPO in 2021 [Updated])

Coinbase makes first Indian acquisition for over US$40 million

• Coinbase will acquire Agara, which operates an AI-powered customer support platform, for a reported sum of US$40 million to US$50 million.
• Agara offers integrations with popular services such as Salesforce, Shopify, and Twilio. Coinbase said the deal will bring Agara’s expertise in machine learning and natural language processing to the crypto platform’s engineering team.
• The acquisition will also help provide Coinbase customers with new personalized, intelligent, and real-time support options.

Fintech firm for gold loans raises US$2.1 million in pre-series A money

• Investors including Manuvel Malabar Jewellers as well as industry veterans and high-net worth individuals have backed Ruptok Fintech in its new financing round.
• The fresh capital will be used to diversify the company’s loan book and integrate additional tech into its financial products and services.
• Founded in July 2020, Ruptok Fintech has disbursed over US$8 million to more than 1,600 customers in the past year. It aims to mark its presence in 27 Indian cities by the financial year ended 2022.

Backpacker hostel chain The Hosteller nets US$1 million in fresh funds

• The funding round was led by FAO Ventures and CA Holding, while Sunicon Ventures, Subhkam Ventures, Jito Angel Network, and FAAD Network also took part.
• The latest investment will be used to increase the company’s number of hostels from 12 to 50, and to expand its footprint in Southeast Asia.
• Founded in 2014, the company’s hostels are equipped with features such as shared dormitories, decked common spaces, bar and cafe, visa assistance, and a travel desk, among others.