Temasek, Warburg Pincus & Bhavish Aggarwal Invest $500M in Ola

Ola Secures $500 Million Investment from Temasek and Warburg Pincus

Ola, a leading ride-hailing company based in Bangalore, India, has received a $500 million investment. The funding comes from Temasek and an affiliate of Warburg Pincus, as announced by the startup on Friday.

Bhavish Aggarwal, co-founder and CEO of Ola, is also participating in this new round of investment. This marks the first capital raise for Ola since its Series J financing concluded two years prior, according to data from Tracxn.

Preparing for a Potential IPO

Ola indicated that the investment is being made “ahead of IPO” plans, though specific timing for an initial public offering remains unconfirmed. The company has not yet set a definitive date for going public.

The valuation of the ride-hailing startup was not disclosed by Ola, Temasek, or Warburg Pincus. However, Ola’s previous financing round valued the company at less than $5 billion.

Expansion and Electric Vehicle Initiatives

Separately, Ola Electric, a spin-off from Ola established in 2019, is currently seeking funding. The company is preparing to commence production of its electric scooters, as recently stated by Aggarwal, who also leads Ola Electric.

The coronavirus pandemic significantly impacted mobility companies. However, recent months have shown a resurgence as lockdown restrictions have eased across various Indian states.

Growth in User Base

Data from App Annie reveals that Ola’s monthly active users on Android in India reached approximately 32 million in June. This represents an increase from around 26 million users in May.

Uber, Ola’s primary competitor in India, also experienced growth, with approximately 22 million Android users in June, up from 18 million in May.

Statements from Leadership

“Over the last 12 months we’ve made our ride-hailing business more robust, resilient and efficient,” stated Aggarwal. “With strong recovery post-lockdown and a shift in consumer preference away from public transportation, we are well positioned to capitalize on the various urban mobility needs of our customers.”

Aggarwal further expressed his welcome to Warburg Pincus and Temasek, anticipating a collaborative partnership in Ola’s future growth phase.

Global Reach and Future Collaboration

Ola currently operates in over 100 cities throughout India and has built a network of over one million driver partners. The company has also expanded its services to international markets, including Australia, New Zealand, and the United Kingdom.

Vishal Mahadevia, MD and head of India business at Warburg Pincus, commented, “We look forward to collaborating with Bhavish and the team in the next phase of Ola’s growth.”