Ola To Raise Over $1 Billion Through Equity, Debt In Pre-IPO Round: Report

Ola is in talks to raise over $1 billion in funding through a mix of equity and debt over the next few months as the ride-hailing platform prepares for hitting the IPO route next year, according to sources.

The company has recently raised over Rs 1,049 crore (about $139 million) from Edelweiss and others at a valuation of over $7 billion.

According to sources, Ola is in discussions to raise a pre-IPO round of over $1 billion at a valuation of $7.5 billion. The fund raise, which is expected to be done in multiple tranches, would be a combination of equity and debt, they added. Ola did not respond to emailed queries.

The $139 million equity funding raised is part of this larger round, they said adding that the proceeds will be utilised for key growth areas in the new mobility ecosystem. Ola is also looking at raising $500 million via a Term Loan (TLB) from global institutional investors. It had recently received a B-rating from S&P Global and a B3 credit rating from Moody's with a stable outlook.

According to a regulatory document filed by Ola (ANI Technologies) to the Registrar of Companies, Edelweiss and others have pumped in Rs 1,049.06 crore, valuing it at over $7 billion. Other investors who invested in this round include Alka PN Family Trust, Atul DP Family Trust, Siddhant Partners, Hero Enterprise Partner Ventures, Vicco Laboratories among others.

As per the filings, Ola has allotted a total of 4,63,471 Series J1 shares at a premium of Rs 22,625 per share. Ola co-founder Bhavish Aggarwal had earlier this year said the company -- which competes against US-based Uber -- is planning a public offering sometime in 2022 but has not yet set a date.

An IPO will help Ola investors like SoftBank, Tiger Global, and Steadview Capital to exit or partially sell their stake in the company to return funds to their shareholders. Founded in 2011 by Bhavish Aggarwal and Ankit Bhati, Ola offers services in India, Australia, New Zealand, and the UK. It is estimated to have raised over $4 billion in funding so far.

In July, Ola had announced an investment of $500 million (about Rs 3,733 crore) from Temasek, Warburg Pincus affiliate Plum Wood Investment and Bhavish Aggarwal.