India: Ola Financial Services said to have raised $26.6m from Matrix Partners, Falcon Edge

Employees work inside the office of Ola cab service in Gurugram, previously known as Gurgaon, on the outskirts of New Delhi, India, April 20, 2016. Reuters.

Ola Financial Services Pvt Ltd, the financial services arm of cab-hailing platform Ola has raised fresh funding of 200 crore from Matrix Partners and Falcon Edge in its on-going funding round, said two people aware of the development.

Separately, the financial services arm’s chief executive Nitin Gupta resigned from his position on Tuesday.

Ola Financial Services is currently in fundraising mode, and it will look to secure additional equity financing in the following months, said the second person aware of Ola’s operations asking not to be named.

Ola’s financial services arm was spun off from its parent entity ANI Technologies Pvt Ltd last year, as the company setoff to expand vertically into the payments and financial services segment. Currently Ola Financials Services Pvt Ltd. houses the mobile payments and wallet product, Ola Money.

The fresh fund infusions into Ola Financial Services Pvt Ltd. comes at a time when the country has been battling covid-19 with stringent lockdown measures. The pandemic has globally affected revenues of businesses in the mobility and hospitality space, as people stayed indoors.

This week, Ola had announced that it is laying off over 1,400 employees, affecting around 35% of its total workforce in the country, while its competitor Uber also let go off around 600 employees in India on Tuesday.

Apart from the funding, Nitin Gupta, chief executive of Ola Financial Services (OFS) also resigned from his position, according to an internal email seen by Mint. The email penned down by Ola’s chief executive Bhavish Aggarwal to his employees announced Gupta’s departure from the company on Tuesday.

“Harish Abhichandani will take over from Nitin as interim CEO of OFS. Harish has successfully donned the business hat as the Head of our UK operations as well in the past, in addition to CFO role and I’m looking forward to working with him,”

“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 as well as by building products and services that are truly consumer first and innovations in this space in even more relevant,” said the email written by Aggarwal.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.