Ola Cabs, a leading ride-hailing aggregator, is gearing up for its second attempt at going public, eyeing a substantial USD 500 million through its Initial Public Offering (IPO). Following a failed endeavor in 2021 to raise USD 1 billion, the company is now setting its sights on a valuation of approximately USD 5 billion.
Key Points:
- Ola Cabs aims for a USD 500 million IPO after a previous failed attempt in 2021.
- Discussions with investment banks, including Goldman Sachs and Citi, are underway for selecting IPO advisors.
- Ola Electric has submitted its DRHP to SEBI, proposing a fresh equity share release and offer for sale.
- Ola makes history by initiating cab operations at the Maharishi Valmiki International Airport in Ayodhya, marking its commitment to expanding services to cultural and tourist destinations.
- Founder Bhavish Aggarwal underscores the company’s dedication to providing a seamless travel experience at the Ayodhya airport.
- Ola’s mobility business in India demonstrates significant financial improvement, reporting a profit in FY23 compared to losses in FY22.
In a move indicative of its intent, Ola is planning to submit its IPO papers for approval to the Securities and Exchange Board of India (SEBI) within the next three months. Reports suggest that the company is currently engaged in discussions with several investment banks, including prominent names such as Goldman Sachs, Bank of America, Citi, Kotak, and Axis. The selection of IPO advisors is anticipated to be finalized within the span of a month.
This renewed effort comes against the backdrop of a notable downturn in Ola’s valuation. Despite being valued at a substantial USD 7 billion during a fundraising round in 2021, the company’s valuation has witnessed a downward revision in subsequent assessments by its investors. Vanguard, one of Ola’s shareholders, notably slashed its internal valuation of the company to USD 1.9 billion in February.
The recent development follows Ola Electric’s submission of its Draft Red Herring Prospectus (DRHP) to SEBI on December 22, 2023. The proposed IPO comprises a fresh release of equity shares amounting to ₹5,500 crore, coupled with an offer for sale (OFS) of 95,191,195 equity shares at a face value of INR 10.
Simultaneously, Ola has made significant strides in its operational expansion, marking a historic milestone with the commencement of cab services at the Maharishi Valmiki International Airport in Ayodhya. This strategic move positions Ola as the first cab service to operate at the Ayodhya Airport, underscoring its commitment to extending its services to burgeoning cultural and tourist destinations across India.
Founder Bhavish Aggarwal took to LinkedIn to announce the initiation of operations at the Ayodhya airport, emphasizing the company’s dedication to ensuring a seamless travel experience. Ola has established a dedicated pickup zone at the airport, with staff available round the clock to assist travelers.
Furthermore, Ola’s mobility business has showcased commendable financial performance in FY23 within India, reporting a profit of INR 250 crore as opposed to a loss of INR 66 crore in FY22.
