Ola Financial Services, the finance-focused subsidiary of India-based on-demand ride provider Ola, has secured Rs 2.5bn ($26.7m) from external investors, the Economic Times reported yesterday, citing a regulatory filing.
Alternative asset management firm Falcon Edge Capital, venture capital firm Matrix Partners and private equity firm Apoletto Managers supplied the financing. The round valued the spinoff at $250m, two people directly aware of the matter told ET.
Ola Financial Services offers a range of mobile-based financial products including a mobile wallet, bill-paying services, insurance and short-term loans. Matrix Partners managing director Vikram Vaidyanathan took a board seat at the company in connection with the round.
Bhavish Aggarwal, Ola’s co-founder and chief executive, said in an internal email seen by ET: “The financial services space in India and in our global markets is significantly underserved due to weak distribution, low trust and complicated products.
“We have a once in a lifetime opportunity to change this with the reach and capabilities of our core ride sharing platform.”.
