The unicorn of mobility, Ola, has raised $ 500 million via a B-Term Loan (TLB) from renowned international institutional investors. The proposed loan issuance received a staggering response from investors with an interest and commitment of around $ 1.5 billion, the rideshare giant said in a statement. The announcement comes as the company headed by Bhavish Agarwal is turning to the electric vehicle segment by establishing the largest electric vehicle manufacturing plant in Karnataka.
Notably, Ola becomes the third startup after OYO and Byju to raise a large amount of funds from foreign institutional investors.
Last month, edtech decacorn Byju’s said in its regulatory filing that it had increased its TLB funding from $ 700 million to $ 1.2 billion. By July of this year, OYO had raised $ 660 million through TLB funding from institutional investors.
“This is a landmark transaction as Ola is one of the few Indian companies to raise capital via the TLB route. Ola is expected to use the term loan to fuel its vision for the future of mobility across its various businesses, including ridesharing, vehicle trading, food delivery, fast trading and financial services, ”according to an official statement. .
Ola said it was one of the first Indian startups to be publicly rated by Moody’s and S&P, two of the major international rating agencies. S&P and Moody’s rated Ola’s first term loan as B- and B3 respectively, with a “stable” outlook based on strong economy and profitability in its market-leading Indian rideshare business .
“The massive response to our B Term Loan is a reflection of the strength of our business and our continued focus on improving the unit economy alongside rapid growth. At Ola, we are accelerating our journey towards building the new mobility ecosystem to help one billion people move sustainably, ”said Bhavish Aggarwal, Founder and CEO of Ola.
JP Morgan and Deutsche Bank were the main co-arrangers of this financing.