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Ola To Acquire Avail Finance To Expand Its Financial Offerings

According to Ola, the acquisition of Avail Finance will shore up its play in the underserved credit systems for its blue-collar workers.

Ola To Acquire Avail Finance To Expand Its Financial Offerings

Ola announced that it is going to buy out Avail Finance after reaching an agreement with the financial services startup that mostly caters to the industrial workforce. This is part of Ola’s strategy to expand its financial offerings to customers. 

The deal amount was not announced by either party. According to Tracxn, an insight platform, Avail Finance had raised $38.5 million which includes $4.5 million in venture debt, all through the multiple rounds and is currently worth $86.6 million. 

One noteworthy fact is that the co-founder of Ola and its chief executive Bhavish Aggarwal and Avail chief executive and founder Ankush Aggarwal are brothers. Major common investors for both these companies include Matrix Partners and Alpha Wave Global. This deal is awaiting approval from its shareholders after which it will be made public. 

According to Ola, the acquisition of Avail Finance will shore up its play in the underserved credit systems, the major percentage of which are blue-collar workers like the driver-partner ecosystem of Ola. This will also include cross-selling of multiple lending products to the driver partners of Ola. 

Ola said it has invested in excess of $104 million into its financial services business which is already showing very strong growth across both the lending and insurance verticals. 

The company said that Ola’s Postpaid BPNL offering is widely available to over 40 million customers and that its vehicle financing business is also showing strong growth with Ola Cars and Ola Electric, where customers have the advantage of seamlessly selecting insurance as well as other add-ons like zero depreciation and roadside assistance. 

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