[Funding alert] Ola raises $500M through Term Loan B
Bengaluru-based mobility unicornhas raised $500 million through a Term Loan B (TLB) from marquee international institutional investors. The company stated that the proposed loan issuance has received a staggering response from investors with interest and commitment of approximately $1.5 billion.
This is a milestone transaction as Ola is among only a few Indian companies to raise capital through the TLB route. 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 & 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.”
J.P. Morgan and Deutsche Bank served as the joint lead arrangers for this financing.
The company also stated that it is one of 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.
The initial public offering (IPO) bound ride-hailing unicorn ANI Technologies Pvt. Ltd., which operates Ola, has also been assigned a first-time B3 corporate family rating (CFR) by New York-headquartered Moody’s Investors Service.
"Ola also operates its new auto retail platform with Ola Cars bringing seamless, digital buying, selling and ownership of vehicles to consumers. 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.
Edited by Anju Narayanan