The investment comes as a string of IPOs is lined up from big-ticket Indian startups.

Ola, the Indian ride-hailing startup, said today (July 9, 2021) that private equity firms Temasek and Plum Wood Investment Ltd, an affiliate of Warburg Pincus, are partnering with founder Bhavish Aggarwal in a $500 million investment in anticipation of Ola’s planned initial public offering (IPO). (Reuters)

Ola did not reveal details of the valuation agreed for the funding round, nor the likely date of the IPO, but said it was bouncing back from the pandemic.

“Over the last 12 months we’ve made our ride-hailing business more robust, resilient, and efficient,” Ola’s co-founder and CEO Bhavish Aggarwal said in a statement. “With strong recovery post lockdown and a shift in consumer preference away from public transportation, we are well-positioned to capitalize on the various urban mobility needs of our customers.”

Vishal Mahadevia, Managing Director and Head of India, Warburg Pincus, said, “Warburg is excited to partner with Bhavish and Ola. They are the leading mobility platform and one of the biggest consumer internet platforms in India with a robust and fast-growing business. We look forward to collaborating with Bhavish and the team in the next phase of Ola’s growth.”

Star-studded IPO lineup

Already this year, frothy Indian stock markets have seen IPOs by 22 companies in 2021 to date. Indian stocks have seen a sharp rally, regardless of pandemic worries, based on robust foreign portfolio investments and rising interest from retail investors.

Indian food delivery company Zomato said on Thursday it would price its 93.75 billion rupees ($1.26 billion) IPO in the range of 72 to 76 rupees per share.

Meanwhile, in one of the more-hyped IPOs, One97 Communications Ltd, the parent of Indian payments firm Paytm, will file for a domestic IPO sized $2.3 billion.

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