IPO-bound Ola now valued at USD 7.3 billion after Edelweiss investment

Indian ride-hailing giant Ola has reportedly raised USD 139 million and is now valued at USD 7.3 billion. The news comes ahead of Ola’s planned initial public offering (IPO) which is scheduled for the first half of 2022.

The recent fundraising was led by financial behemoth Edelweiss, with added participation from IIFL, Tejal Merchantile, Siddhant Partners, and Hero Enterprise.

It is worth noting that the latest funds comes only five months after Ola managed to raise USD 500 million in funding led by investment firms Warburg Pincus LLC and Temasek Holdings Limited. Ola co-founder and CEO Bhavish Aggarwal and also participated during the funding back then.

In separate fundraising, Ola secured USD 52.7 million from Temasek. Even Ola Electric, which again is spearhead by Agarwal, raised approximately USD  200 million at a valuation of USD 3 billion, which was then backed by Alpha wave Global.

In addition to having over a million drivers on its platform in India, Ola also operates in Australia, New Zealand, and the United Kingdom. However, the company claims that it only recovered after New Delhi relaxed the COVID-19 restrictions in the country.

Although Ola Electric unveiled its first e-scooter in August this year, its delivery has been repeatedly delayed owing to the global chip shortage crisis. Amidst these developments, a Bangalore-based EV startup Bounce introduced its first electric scooter, which is quite affordable than what Ola offers.

It is also worth mentioning that both Ola and Ola Electric are known to have been experiencing several issues. The two companies have seen some top leadership departures in the last few months, over claims of toxic work culture and a distrustful chief executive, which again could severely hamper Ola's market position.

Meanwhile, Ola’s major rival Uber has introduced an audio-recording feature in three U.S. cities to ensure better safety during trips.

Source credits –

https://techcrunch.com/2021/12/08/indian-ride-hailing-startup-ola-valued-at-7-3-billion-in-new-funding/