May 26, 2022

Ola said Thursday night it had reached an agreement to acquire Avel Finance, a financial services startup that is working to expand its financial services offering as a passenger-to-worker giant.

The two startups did not disclose the terms of the deal. According to analytics platform Tracxn (fees), Avail Finance raised about $38.5M (including about $4.5M in venture capital) in multiple rounds and was valued at $86.6M.

It is worth noting that Bhavish Agarwal, co-founder and CEO of Ola, and Ankush Agarwal, founder and CEO of Avail Finance, are brothers. The two companies share Alpha Wave Global and Matrix Partners as the main mutual investors. The deal requires shareholder approval.

Ola said the acquisition will help the startup “strengthen its position in a low-credit segment that includes workers like Ola’s partner driver ecosystem.” It says the game involves cross-selling “multiple loan products” to its driver partners.

The large startup said it has invested about $104 million in its financial services business, which it says is already “showing strong growth in both lending and insurance.”

“Ola Postpaid, its BNPL offering, is available to 40 million customers, its auto finance business is growing rapidly along with Ola Electric and Ola Cars, its used car business. With insurance, Ola created a first-of-its-kind built-in auto insurance system for Ola Electric and Ola Cars, where customers can easily choose insurance; and add-ons like roadside assistance or zero depreciation in the procurement process,” he added.


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