Ola raises $500 million in debt ahead of 2022 IPO

Indian ride-hailing company Ola on Thursday said it has raised $500 million (about Rs 3,820 crore) loan from international institutional investors, as the SoftBank Group-backed start-up prepares to make its stock market debut next year.

Hailstonein which India has a majority share ride-hailing market where it competes Uber, plans to raise up to $1 billion (approximately Rs 7,620 crore) through an initial public offering.

Earlier this month, Ola CEO Bhavish Agarwal said that the company planned to go public in the first half of 2022.

The Bengaluru-based company said the proposed loan issuance received a shocking response from investors with interest and commitment of around $1.5 billion (about Rs 11,430 crore).

Agarwal also plans to list Ola’s separate electric vehicle business in the future – a segment on which it has bet heavily – and is currently starting it with electric scooters. Ola started deliveries of its electric scooters from December 15.

© Thomson Reuters 2021