Indian ride-hailing company Ola Cabs is preparing for an initial public offering (IPO) to raise $500 million at a valuation of approximately $5 billion, per three sources familiar with the situation who spoke to Reuters on Friday.
Backed by SoftBank, Ola, which competes with Uber in India, is expected to submit IPO documentation to India’s market regulator within three months. The sources requested anonymity due to the confidential nature of the information.
Currently, Ola is selecting investment banks to assist with the IPO and plans to finalize IPO advisers within a month. The firms in the discussion include Goldman Sachs, Bank of America, Citi, and Indian banks Kotak and Axis.
The banks’ responses varied, with Citi and Bank of America choosing not to comment and no responses from the others at the time of inquiry.
This marks Ola’s second attempt at an IPO after abandoning a plan in 2021 to raise up to $1 billion. The company’s valuation has fluctuated, valued at $7 billion during a 2021 fundraising round. However, recent internal valuations by investors like Vanguard have sharply reduced its estimated worth to $1.9 billion.
Ola’s investor roster includes prominent names such as Warburg Pincus, Temasek, and Tiger Global Management. Founded by Bhavish Aggarwal, a notable figure in India’s startup scene, Ola has often been compared to Tesla’s Elon Musk. Aggarwal also heads Ola Electric, India’s leading electric scooter manufacturer, which is also planning its IPO.
Regarding financial health, Ola has been working to reduce losses and streamline operations. The company managed to more than halve its losses in the fiscal year ending in 2023. Additionally, last week, Ola announced the closure of its international operations in the UK, Australia, and New Zealand to focus more on its core markets.
 aiming to raise $500 million at a valuation of about $5 billion. With major backing from SoftBank and a plan to streamline operations, the Indian ride-hailing giant gears up for its second IPO attempt amidst varying valuation){kind=link}