Ola Raises $500 Million in Debt to Fuel its Quick Commerce Dream

Ola has raised $500 million in debt from undisclosed institutional investors as it prepares for an initial public offering next year. The company has used Term Loan B (TLB) for raising funds. It is a long-term loan, made by institutional investors who are focusing on maximizing the long-term total returns of their investment.

Ola is planning to grow its businesses in ride-hailing, vehicle commerce, delivery with foods, quick commerce, and financial services. It has recently launched an e-grocery store, Ola Stores. The founder and CEO of ANI Technologies, Bhavish Aggrawal has said that the response from term loan B represents their strength in the market.

J.P. Morgan and Deutsche Bank have served as the lead arrangers for this financing of the company. Earlier, the company raised $500 million in July from Temasek and Warburg Pincus. Currently, the total valuation of the company is around $8 billion.