Ola raises $500 million pre-IPO round from Temasek, Warburg Pincus
Ride-hailing firm Ola said on July 9 that it had raised $500 million led by private equity giants Temasek and Warburg Pincus, leading up to its public offering.
Ola did not disclose its valuation, which could be lower than earlier because it has been battered by the COVID-19 pandemic. It also did not disclose by when it plans to go public.
On May 7, Moneycontrol had reported exclusively that Ola’s early investor Matrix Partners India was selling a part of its stake for $75 million cash at a valuation of $3-3.5 billion.
“Over the last 12 months we have made our ride-hailing business more robust, resilient and efficient. With a strong recovery post lockdown and shift in consumer preferences away from public transportation, we are well positioned to capitalise on the various urban mobility needs of our customers,” said Bhavish Aggarwal, Chairman and Group CEO, Ola.
Ola’s IPO plans are also latest in a stream of IPOs from Indian internet startups, signaling a historic shift to the public markets. Zomato, Policybazaar, Nykaa and Freshworks, among others, are expected to list in the coming months.
Chinese ride-hailing major Didi Chuxing also listed on the New York Stock Exchange last week, making it the third such company after United States-based Uber and Lyft to go public.
Persons close to Ola said that its business has also relatively held up, because of its international operations, where economies opened up faster and margins on each ride are higher for the company.
New investors Temasek and Warburg Pincus have been increasing their exposure to technology startups in India. While New York-based private equity firm Warburg Pincus invested in audio appliances brand boAt earlier this year, Singapore government-owned investment company Temasek has backed education firm Upgrad and online meat delivery startup Licious, among others.