Ola, the ride-hailing company, has received $500 million in debt from unknown institutional investors as it prepares for an initial public offering (IPO) next year.
The money was raised under the Term Loan B (TLB) mechanism, according to the company.
TBL is a term loan provided by institutional investors with the primary purpose of maximising their long-term total returns. In a press release, the company stated that it will use the term loan to expand its businesses, which include ride-hailing, vehicle commerce, food delivery, rapid commerce, and financial services.
The Khichdi Experiment, The Biryani Experiment, The Paratha Experiment, and The Daily Dinner are some of Ola’s food brands. With the debut of Ola Stores earlier this month, it also entered the fast grocery delivery market.
“The enormous response to our term loan B reflects the strength of our company and our commitment to improving unit economics while expanding rapidly.” In a news release, Bhavish Aggarwal, ANI Technologies’ founder and CEO, said, “We are speeding our journey toward establishing the New Mobility ecosystem to assist a billion people to travel sustainably.” Ola’s parent company is ANI Technologies.
The joint lead arrangers for this financing were J.P. Morgan and Deutsche Bank.
The news comes just a few months after Ola secured $500 million in a pre-IPO round from Temasek and Warburg Pincus in July. The corporation is estimated to be worth $8 billion.
Apart from that, Ola Electric, Ola’s sibling company that produces and distributes electric scooters, raised $100 million in debt and another $200 million in equity in October. The company is valued at $3 billion and is a subsidiary of ANI Technologies.