Companie

Ola raises $500 million term loan from institutional investors

BL Bengaluru Burea Bengaluru | Updated on December 16, 2021

Ola has reported a positive EBITDA of ₹89.82 crore (on a standalone basis) for the financial year that ended in March 2021, which is a 109 percent improvement on a year-on-year basis (File photo)   -  REUTERS

Mobility major will use it to fuel its vision for the future of mobility across its various businesses

Mobility major, Ola has raised $500 million through a Term Loan B (TLB) from international institutional investors.

The proposed loan issuance is said to have received a commitment of approximately $1.5 billion from investors. S&P and Moody’s rated Ola’s first-lien term loan as B- and B3 respectively with a ‘stable’ outlook on the back of strong unit economics and profitability in its Indian ride-hailing business.

Ola is expected to utilise the term loan to fuel its vision for the future of mobility across its various businesses including ride-hailing, vehicle commerce, delivery with foods, quick commerce and financial services.

Bhavish Aggarwal, Founder and CEO, Ola, said, “The overwhelming response to our term loan B is a reflection of the strength of our business and our continued focus on improving unit economics alongside rapid growth. At Ola, we are accelerating our journey towards building the New Mobility ecosystem to help a billion people move sustainably.”

Previous financing

J.P. Morgan and Deutsche Bank served as the joint lead arrangers for this financing. Earlier this month, Ola raised $139 million from Edelweiss and others at a valuation of about $7.3 billion. Other investors in this round include Siddhant Partners, IIFL, Tejal Merchantile, Hero Enterprise, Vicco Laboratories, Alka DP Family Trust and Atul DP Family Trust among others. In July, Temasek, Warburg Pincus and Aggarwal had invested $500 million in Ola.

Ola has reported a positive EBITDA of ₹89.82 crore (on a standalone basis) for FY21, a 109 per cent improvement on a year-on-year basis. The company also reported a profit before tax of ₹76.29 crore in FY21 on a standalone basis, an improvement of more than 2x on a year-on-year basis.

During the year, Ola has earned a total revenue of ₹772.68 crore as compared to the last year’s income of ₹2,073.02 crore. The severe drop in revenue was attributed to the Covid-19 pandemic and the nationwide lockdown. Ola is looking to go public by next year and is estimated to raise around $1-2 billion from the IPO.

Published on December 16, 2021

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