Bengaluru-based mobility platform Ola said that Singapore government’s investment fund Temasek and Plum Wood Investment Ltd, an affiliate of Warburg Pincus, a global private equity fund focused on growth investing, are partnering with Ola founder Bhavish Aggarwal for a $500 Mn investment ahead of Ola’s IPO.
This is amongst the largest investments in the Indian consumer internet space by these funds. According to an Entrackr report , two separate applications to invest in the company were filed at the Competition Commission of India by Warburg Pincus’ Plum Wood, Temasek’s MacRitchie, Fort Canning and Ola’s founder Bhavish Aggarwal.
Ola had announced its IPO ambitions last year. Founded by Bhavish Aggarwal and Ankit Bhati in January 2011, Ola offers its services across 250 cities in India, UK, Australia and New Zealand.
“Over the last 12 months we’ve made our ride hailing business more robust, resilient and efficient,” said Bhavish Aggarwal, chairman and group CEO, Ola. “With strong recovery post lockdown and a shift in consumer preference away from public transportation, we are well positioned to capitalise on the various urban mobility needs of our customers. I welcome Warburg Pincus and Temasek to Ola and look forward to collaborating with them in our next phase of growth,” he said.
Temasek is an existing investor in Ola after it poured $225 Mn in 2018. The startup had previously raised INR 35.88 Cr ($5.05 Mn) in Series J funding round from ARK Ola Pre IPO Fund in October 2019. Prior to today’s announcement Ola had raised $3.8 Bn over 25 rounds.
According to the applications, the investment represents a good opportunity for MacRitchie and Fort Canning to invest and participate in the long-term growth of the cab aggregator market in India.
While Plum Wood will acquire a minority shareholding in Ola, founder Bhavish Aggarwal will increase his share to further strengthen his involvement in the management and affairs of ANI Technologies, the parent company of Ola.
“Warburg is excited to partner with Bhavish Aggarwal and Ola. “They are the leading mobility platform and one of biggest consumer internet platforms in India with a robust and fast growing business. We look forward to collaborating with Bhavish and the team in the next phase of Ola’s growth,” said Vishal Mahadevia, managing director and head of India at Warburg Pincus.
Ola’s ride-hailing business has been severely hit by the pandemic and slew of lockdowns.