Temasek and Plum Wood Investment Ltd, an affiliate of private equity fund Warburg Pincus, along with Bhavish Aggarwal are investing $500 million in Ola ahead of its IPO.

The IPO will be issued by ANI Technologies, the parent  of Ola Cabs, Ola Foods and Ola Financial Services. Ola Electric Mobility Pvt Ltd is not a part of ANI Technologies and exists as a separate entity.

This fresh funding is likely to see Ola’s valuation rise. Ola had last raised $300 million from Hyundai Motor Company and Kia Motors Corporation in 2019, when its valuation was at its peak at $6 billion. However, the Vanguard Group had cut the value of its investment in Ola by half to $3 billion from its peak valuation of $6 billion around the same time.

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While Ola did not disclose the details of the investment by Temasek, Warburg Pincus and Aggarwal, this investment is expected to see Aggarwal increase his holding in ANI Technologies. This is amongst the largest investments in the Indian consumer internet space by these funds and is a testament to the robust and resilient business built by Ola, the company said in a statement on Friday.

“ With strong recovery post lockdown and a shift in consumer preference away from public transportation, we are well positioned to capitalise on the various urban mobility needs of our customers, said Bhavish Aggarwal, Chairman and Group CEO, Ola.

Vishal Mahadevia, Managing Director and Head of India at Warburg Pincus, said, “They are one of biggest consumer internet platforms in India with a robust and fast growing business. We look forward to collaborating in the next phase of Ola’s growth.”

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