Ola raises half a billion dollars in debt to fuel its food delivery and quick commerce dream

• Ola has raised $500 million in debt from undisclosed institutional investors.
• The funding has been raised through the Term Loan B (TLB) route.
• Ola has also raised $500 million in July as a part of its pre-IPO round.

Ride hailing firm Ola has raised $500 million in debt from undisclosed institutional investors as the company prepares to go for an initial public offering (IPO) next year.

The funding has been raised through the Term Loan B (TLB) route, the firm said in a statement.

TBL is a term loan made by institutional investors whose primary goals are maximising the long-term total returns on their investments.

The company, in its press note, also highlighted that it will use the term loan to grow its businesses — including ride hailing, vehicle commerce, delivery with foods, quick commerce and financial services.

Ola runs food brands like the Khichdi Experiment, The Biryani Experiment, The Paratha Experiment and The Daily Dinner. It also entered the quick grocery delivery services earlier this month with the launch of Ola Stores.

“The overwhelming response to our term loan B is a reflection of the strength of our business and our 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,” Bhavish Aggarwal, ANI Technologies’ founder and chief executive (CEO), said in a press note. ANI Technologies is the parent company of Ola.

J.P. Morgan and Deutsche Bank served as the joint lead arrangers for this financing.

The development comes only a few months after Ola raised $500 million in July from Temasek and Warburg Pincus in a pre-IPO round. The company is said to be valued at around $8 billion.

Besides this, Ola’s sister company Ola Electric — which manufactures and sells electric scooters — has raised $100 million in debt and another $200 million equity money in October. The company, which is also a part of ANI Technologies, is valued at $3 billion.

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