Ola Receives INR 35.9 Crore from ARK Ola Pre-IPO Private Investment Trust, alluding its IPO plans
The Indian unicorn, Ola after venturing into e-mobility space is set out to launch its initial public offering (IPO). The ride-hailing company has recently received funds from the investment fund, ARK Ola Pre-IPO Private Investment Trust.
The ride-hailing company has received INR 35.9 crore as fresh funds from the fund. This alludes that the Indian company is close to launching its IPO shortly, according to the daily news, The Economic Times.
Ola Releasing its IPO Ambition Soon
The Korea-headquartered, private investment fund has infused money in Series J round of Ola, as reported by the daily news citing the company’s regulatory filings.
In August this year, the company has passed a plan to assign 16,885 Series J CCPS to ARK Ola Pre IPO Fund at a nominal price of INR 10 with a premium of INR 21,240 to raise INR 36.88 crore, as reported by the daily news, Inc42.
This transaction gives a cue that the Indian company received funds to support its IPO plans. The investment fund is filed in Yeongdeungpo-gu, Seoul, Korea, according to the cited daily news.
Becoming a listed company on the stock exchange was a long-time plan of Ola.
In the previous year, Bhavish Aggarwal had said the company was making a profit on every single ride. Further, he alluded that both the co-founders were aiming for an IPO in the coming “3-4 years”, Aggarwal told the daily news, The Economic Times.
Ola Prepping for a Smooth IPO
At present, the Indian regulatory body, Securities and Exchange Board of India (SEBI) puts restrictions on the IPO for startup companies if the promoter (a founder or a cohort of co-founders) owns less than 20 per cent.
This regulation has turned out as a hurdle in Ola’s IPO plans. Thus, Ola along with PolicyBazaar and Lenskart have demanded SEBI to change guidelines for IPO listing for tech startups, essentially the regulations relating to promoter holdings, as reported by the daily news, Inc42.
According to the startups’ demands, the minimal promoter holdings requirement should be eliminated as it brings a challenge for startup companies who want to launch their IPO.
Indian cab aggregator, Ola has gathered more than $3.8 billion from investment companies so far. Some of its prominent investors are Hyundai Motor Company, Sachin Bansal, SoftBank, and Rata Tata, among others.
The company was established in January 2011 by Ankit Bhati and Bhavish Aggarwal. At present, the company has its presence across India, New Zealand, UK, and Australia. It asserts to have completed more than a billion rides yearly with its more than 1.5 million drivers. Since June 2018, the cab aggregator had been earning revenue for every cab ride.
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