Ola is investing up to Rs 786.1 crore in Ola Financial Services (OFS), which will now become a 100 percent subsidiary of the ride-hailing company, According to regulatory documents. ANI Technologies will now acquire 100% of Ola Financial Services in an all-stock acquisition, according to market sources.
Ola has been granted permission to “make an investment in Ola Financial Services up to Rs 786,64,12,400 in kind consideration against swap of shares of the firm,” according to documents submitted by ANI Technologies (which controls Ola) to the Registrar of Companies (RoC).
Ola Financial, which is a crucial aspect of Ola’s mobility platform, has sold over 675 million policies.
OFS Plans to Expand Insurance Business Globally
Ola Financial Services is planning to extend its insurance business globally to support the company’s mobility service through products developed for the UK and Australia, New Zealand (ANZ) markets, according to a recent regulatory filing by ANI Technologies.
The influence of external variables on the lending environment in general, as well as the twofold impact on the mobility company and its spillover to the OlaMoney brand, had led OFS to have a challenging year (FY21).
OFS had introduced a plethora of new loan and insurance products and services, as well as reinforced its relationships with the ecosystem’s main merchants.
OFS is expanding its suite of products by launching new lending offerings in the form of two-wheeler, four-wheeler, and personal loans to offer a comprehensive financial product ecosystem to the customer, as per that filing.
OFS recently strengthened its leadership team in Financial Services with the appointment of PV Harinarayan as the Vice President of the lending business.