Technology

SoftBank-backed ride-hailing firm Ola plans to raise $1 billion in India IPO

Ola cab drivers talk with each other as they wait for passengers by a roadside in Amritsar.
NARINDER NANU | AFP | Getty Images

Indian ride-sharing firm Ola is planning to raise up to $1 billion through an initial public offering, a source familiar with the situation told CNBC.

News of the IPO was earlier reported by Bloomberg and Reuters. Both organizations cited unnamed sources.

Ola declined to comment for this report.

Reuters said Ola is finalizing the banks that will advise on its fundraising and has reportedly roped in Citigroup, Kotak Mahindra and Morgan Stanley.

Chairman and group CEO Bhavish Aggarwal told CNBC this month that the company planned to go public next year and that a final date had not been decided.

The SoftBank-backed start-up is part of a growing list of Indian tech start-ups planning to go public.

Food delivery firm Zomato made its stock market debut last month, payments giant Paytm filed for a $2.2 billion float, and online insurer PolicyBazaar filed for an IPO to raise over $800 million. Reports say e-commerce giant Flipkart is also exploring listing options.

Most of Ola’s operations are in India, but the company’s ride-hailing services are also available in the U.K., Australia and New Zealand. As the coronavirus pandemic kept most people at home for extended periods of time, it forced the company to cut its workforce.

Last month, Ola announced that Plum Wood Investment, an affiliate of global private equity firm Warburg Pincus, and Singapore state investor Temasek, were planning to invest $500 million into the company ahead of its IPO.

CNBC’s Naman Tandon contributed to this report.

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