Ola, an Indian ride-hailing startup, has agreed to acquire neo-banking platform Avail Finance in order to expand its financial services offering.
- The financial terms of the agreement were not disclosed by Ola, which owns a 9% share in Avail Finance.
- Moneycontrol, on the other hand, claims that the deal is worth $50 million.
- Ola intends to use Avail Finance’s product portfolio to enhance its lending operations and further its neo-banking expansion goals.
- The acquisition is a critical step in Ola’s bigger drive into the fintech market as it strives to develop a mobility-focused financial services business under Ola Financial.
- Ola Financial Services will expand its position in the credit underserved areas that include blue-collar employees, such as Ola’s driver-partner ecosystem, with this purchase.