Mobility major Ola has raised $139 million from Edelweiss and others, at a valuation of about $7.3 billion.
Other investors who invested in this round include Siddhant Partners, IIFL, Tejal Merchantile, Hero Enterprise, Vicco Laboratories, Alka DP Family Trust, and Atul DP Family Trust, among others. According to Ola’s regulatory filings, the company has allotted a total of 463,471 Series J1 shares of face value of ₹10 each at a premium of ₹22,625 per share.
Edelweiss was allotted 110,447 shares for an investment of ₹247 crore, while IIFL was allotted 82,836 for an investment of ₹186 crore and Siddhant Partners invested ₹99 crore for an allotment of 44,179 shares.
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. The company also reported a profit before tax of ₹76.29 crore in FY2021 on a standalone basis, an improvement of more than 2x on a year-on-year basis.
During the year, the company 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 imposed by the Indian government.
IPO plans
Ola is looking to go public by next year and is estimated to raise around $1-2 billion from its IPO. Earlier in July, Temasek, Warburg Pincus, and Co-founder Bhavish Aggarwal had invested $500 million in Ola. The company has a clutch of marquee investors on its board including SoftBank, Steadview Capital, Tiger Global Management, Matrix Partners, among others.
The company has recently seen a spate of executives leaving the firm. Ola's chief financial officer, Swayam Saurabh, and COO Gaurav Porwal have quit the company in October, as the company underwent internal restructuring.
Since then the mobility major has announced multiple new leadership appointments across Ola Financial Services, Ola Cars, and Ola Electric. Ola has also recently forayed into new verticals like quick grocery delivery Ola Store, used-car retail Ola Cars and has plans to launch new lending products such as two-wheeler loans, four-wheeler loans, and personal loans.
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