Bhavish Aggarwal-led mobility firm Ola today announced it has raised $500 million (Rs 3,804 crore) via a Term Loan B (TLB) from marquee global institutional investors. The company also stated that the proposed loan issuance received a staggering response from investors with interest and commitment of approximately US$1.5 billion.
It's worthy to mention that Ola is among only a few Indian companies to raise funding through the TLB route. Term Loan B is a term loan made by institutional investors with the primary goal of maximizing the long-term total returns on their investments.
Hospitality firm OYO was the first Indian startup to raise capital through the term B loan (TLB) route.
According to the reports, Ola is expected to utilize the raised capital 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.
“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," Bhavish Aggarwal, Founder & CEO, Ola said.
US-based J.P. Morgan and Deutsche Bank served as the joint lead arrangers for this financing, the statement said.
The ride-hailing firm also stated that it is one of the first Indian startups to be publicly rated by Moody's and S&P, two of the leading International rating agencies. The companies had 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 market-leading Indian ride-hailing business.
Apart from its core business, Ola is also operating its new auto retail platform with Ola Cars bringing seamless, digital buying, selling, and ownership of vehicles to customers. " Ola is dedicated to transitioning the world to sustainable mobility and making the world better than we found it," the company stated in a release.
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