Ola To Acquire Fintech Firm Avail Finance

Synopsis – However, the amount of the acquisition deal hasn’t been revealed and the deal has not received the approval of shareholders. As per the reports, the deal is said to be a significant step towards the brand into the fintech space as it aspires to build mobility-based financial services under its financial division.

Indian mobility major Ola has announced that it is going to acquire fintech company Avail Finance. Interestingly, Bhavish Aggarwal who is the CEO of Ola is acquiring Avail Finance, which was founded by his brother Ankush Aggarwal and Tushar Mehndiratta in 2017.

However, the amount of the acquisition deal hasn’t been revealed and the deal has not received the approval of shareholders. As per the reports, the deal is said to be a significant step towards the brand into the fintech space as it aspires to build mobility-based financial services under its financial division.

Notably, Avail Finance already has Ola onboarded as an investor. Apart from Ola, Avail Finance has Falcon Edge and Matrix Partners as investors. The company recently had acquired YeLo, which is a neobank operating in the same field and is in the line to seek regulator’s approval in order to acquire Art Climate Finance (India). 

Report quoting Ola’s statement mention that the expansion will be helping it to cross-sell multiple lending products to the company’s large driver-partner base and will provide them with a single platform for their all financial needs. Also, the company recently had invested over 800 crores into the financial service of its own.

The reports also suggest that Ola Financial Services is also ambitious towards strengthening itself in the credit underserved segments that include blue-collar workers for example the company’s driver-partner ecosystem.

The development regarding the acquisition comes in a scenario when the fintech is struggling with multiple hardships. The company is said to be looking to raise $150-$200 million at a valuation of $5 billion which is less than the last round that took place at the valuation of $7 billion, the reason being IPO plans of the company are delayed.

Additionally, the mobility major is offering postpaid services to over four crore customers. Under the postpaid services, the users can pay later for availing of the services. 

Ola was founded in December 2010 by Bhavish Aggarwal and Ankit Bhati. The ride service is available in more than 250 cities. Starting in India, the company is now a multinational company that provides services in Australia, New Zealand, and the United Kingdom as well.