Ola Cabs, a major Indian ridesharing company, is planning to launch an Initial Public Offering (IPO) to secure $500 million. The company is targeting a valuation of about $5 billion, as reported by Reuters. The company is set to submit its IPO documentation to India’s Securities and Exchange Board (SEBI) within the next three months. Backed by SoftBank, Ola is currently in discussions with top investment banks like Goldman Sachs and Bank of America. The goal is to finalise the IPO advisors soon. Although, this is not Ola’s first attempt at going public.
Unsuccessful IPO attempt and Revaluation
Back in 2021, Ola was riding high with a valuation of $7 billion during a strong fundraising round. They made an unsuccessful attempt at going public that year, where they aimed to raise $1 billion. After that, some key investors, including the prominent investment firm Vanguard, took a closer look at their stakes in Ola and adjusted their valuations. Vanguard’s latest revaluation of Ola is around $1.88 billion. This represents a sharp drop from their peak valuation of $7.3 billion in December 2021, approximately a 74% drop.
This drop in revaluation is more than just numbers changing, it impacts how investors see Ola’s financial health and future potential. It also plays a critical role in Ola’s upcoming attempt at going public. It shows how tricky it can be to keep investors happy while handling the financial details of growing a big company. This shows how business values can change often and why it’s important for companies to stay adaptable and aware of both market conditions and what investors expect.
Ola Electric Also Planning an IPO
Ola Electric, the electric vehicle division of Ola, is gearing up for its initial public offering (IPO), just like its ride-hailing company, Ola Cabs. They took a big step toward going public by submitting their draft red herring prospectus to the market regulator SEBI in December 2023. While they haven’t set a specific date for the IPO yet, Ola Electric is looking to raise about ₹7,250 crore (roughly $880 million). This amount includes a mix of new shares and some being sold by existing investors. This move could make Ola Electric the first major Indian electric vehicle (EV) company to enter the public market.
Ola Cabs is also pulling back from international markets to focus on growing its electric vehicle business in India. They have stopped their services in New Zealand, Australia, and the UK. In conclusion, Ola Cabs is getting ready for a big step with its upcoming IPO and a focus on growing its business in India, especially with electric vehicles. By leaving international markets and concentrating on home, Ola is showing it’s ready to adjust and grow according to what works best. This move highlights Ola’s commitment to making travel easier and better for everyone in India, setting it up to play a big role in shaping how we move around in the future.
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