Deepti Sri · · 1 min readOla fuels up with $500m raise via term loan
India-based ride-hailing firm Ola said it has raised US$500 million through a term loan B facility from international institutional investors.
Photo credit: Ola.
As part of the proposed loan issuance, Ola has received US$1.5 billion in commitment from backers, though the company has not disclosed details of the investors involved. The funds will go into its business units across ride-hailing, vehicle commerce, food delivery, quick commerce, and financial services.
Ola, which rivals Uber in India, has been aggressively raising funds this year, as it looks go public by the first half of 2022. It recently raised US$139 million in its series J round at a pre-money valuation of nearly US$7.3 billion.
The capital raise also comes amid a growing need for mobility firms to innovate their product and adapt to the socioeconomic changes brought about by the Covid-19 pandemic. The Indian shared mobility market is poised to grow at a compounded annual growth rate of 56.8% by 2025.
See also: A list of India’s unicorns and their early investors (Updated)
JP Morgan and Deutsche Bank served as the joint lead arrangers for the term loan.
Editing by Collin Furtado and Jaclyn Tiu
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