New age mobility company Ola has announced it has raised $ 500 mn via a Term Loan B (TLB) from marquee international institutional investors.
The company said its proposed loan issuance received a staggering response from investors, with interest and commitment of approximately $ 1.5 billion.
JP Morgan and Deutsche Bank served as the joint lead arrangers for this financing. Ola is one of the first Indian start-ups to be publicly rated by Moody's and S&P. S&P and Moody’s has rated the company’s first line 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, Ola said in a statement.
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 Ola’s term loan B is a reflection of the strength of its business and its 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,” he said.