As it looks to expand its financial services offerings, the ride-sharing giant has reached an agreement to acquire a financial services startup that serves the blue-collar workforce.
The terms of the deal were not disclosed. According to insight platform Tracxn, the company raised about $38.6 million and was valued at $86.6 million.
Alpha Wave Global and Matrix Partners are major investors in the two companies. The deal needs approval from shareholders.
The acquisition will help the startup strengthen its play in the credit underserved segments that comprise blue-collar workers.
The bigger startup said it has invested nearly $104 million into its financial services business, which it said is already showing strong growth.
Ola Postpaid is available to 40 million customers, its vehicle financing business is growing rapidly, and its used cars business is growing. The embedded motor insurance journey for Ola Electric and Ola Cars is the first of its kind, where customers can choose Insurance and add ons like roadside assistance or zero depreciation within the buying journey.
More to come.
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