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Ride-hailing giant Ola Cabs is preparing for an initial public offering (IPO) aiming to raise around ₹4,000 crore with a company valuation of approximately ₹40,000 crore, Reuters reported on Friday.
Backed by SoftBank, Ola intends to submit IPO approval papers to market regulator Securities and Exchange Board of India (SEBI) within three months. The report said that the company is in discussions with investment banks like Goldman Sachs, Bank of America, Citi, and Indian firms Kotak and Axis. Within a month, Ola plans to appoint IPO advisors, it added.
Ola’s second IPO attempt
This marks Ola’s second IPO attempt, following a 2021 plan to raise up to ₹8,300 crore, which was scrapped. Despite being valued at ₹58,300 crore during a 2021 fundraising round, internal assessments by investors have reduced Ola’s valuation.
Vanguard, an Ola shareholder, downgraded its internal valuation to ₹15,800 crore in February.
Warburg Pincus, Temasek, and Tiger Global Management are among Ola’s other investors.
What is Ola cabs? 5 points
1. Ola is founded by Bhavish Aggarwal, a prominent figure in India’s startup landscape.
2. Bhavish Aggarwal also heads Ola Electric, the country’s leading electric scooter manufacturer.
3. Ola Electric has already filed regulatory papers for its IPO.
4. Ola’s cab business has implemented measures to cut losses and streamline operations, resulting in a notable reduction in fiscal year 2023 losses.
5. Last week, Ola announced the closure of its international ventures in the UK, Australia, and New Zealand, as part of its strategic restructuring efforts.
(Inputs from Reuters)
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