Ola, a ride-hailing company, announced on July 9 that it had received $500 million in a pre-IPO round sponsored by private equity firms Temasek and Warburg Pincus. Ola did not reveal its worth, which could be lower than it was previously because to the COVID-19 epidemic. It also didn’t say when it intended to go public. On May 7; lt is exclusively reported that Matrix Partners India, an early investor in Ola, was selling a portion of its ownership for $75 million in cash at a valuation of $3-3.5 billion.
“We’ve made our ride-hailing business more strong, durable, and efficient over the previous 12 months. We are well positioned to capitalize on our customers’ different urban mobility needs, thanks to a solid recovery from the shutdown and a change in consumer preferences away from public transit “Ola’s Chairman and Group CEO, Bhavish Aggarwal, stated.
Ola’s IPO plans are the latest in a long line of IPOs by Indian technology companies, signifying a historic transition to public markets. In the next months, Zomato, Policybazaar, Nykaa, and Freshworks, among others, are likely to list. Didi Chuxing, a Chinese ride-hailing business, went public on the New York Stock Exchange this week, making it the third such company to do so after Uber and Lyft, all of which are located in the United States.
Ola’s business has also held up, according to sources close to the company, because of its international operations, where economies have opened up faster and the company’s profits on each ride are larger.
Temasek and Warburg Pincus, two new investors, have been boosting their exposure to Indian technology businesses. While Warburg Pincus in New York invested in audio appliance business boAt earlier this year, Temasek, a Singapore government-owned investment firm, has funded education provider Upgrad and online meat delivery startup Licious, among others.