Private hire operator Ola raises $500m ahead of the Uber rivals stock market float

Ride-hailing firm Ola have announced they have raised $500m (£362m) from global private equity funders as the rivals to Uber prepare for a stock market float.

The Indian-based mobility firm announced yesterday that Temasek and Plum Wood Investment Ltd, an affiliate of Warburg Pincus, are partnering with Ola founder Bhavish Aggarwal for a $500m investment ahead of Ola’s IPO.

Bhavish Aggarwal, Chairman and Group CEO of Ola, said: “Over the last 12 months we’ve made our ride hailing business more robust, resilient and efficient. With strong recovery post lockdown and a shift in consumer preference away from public transportation, we are well positioned to capitalize 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.”

Vishal Mahadevia, Managing Director and Head of India at Warburg Pincus, said: “Warburg is excited to partner with Bhavish 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.”

In October 2020 Ola were banned from operating in London. Transport for London (TfL) refused to grant Ola a new London private hire vehicle (PHV) operator’s licence as it could not find it fit and proper to hold one after discovering a number of failures that could have risked public safety.

Ola are to appeal the decision and continues to operate in the capital in the meantime.