On July 28, Ola, a ride-hailing firm,
stated that it has raised its employee stock option pool (ESOP) to Rs 3,000
crore and distributed an additional Rs 400 crore in stock to employees in
preparation for its upcoming public stock offering.
“Our expanded ESOP program, combined
with a new stock allocation of Rs 400 crore, allows our key employees to
participate in the long-term wealth generation opportunities created by
their inventions and the effect they have. As we continue to drive the world's
shift to sustainable mobility, it will also reinforce their sense of ownership
and match their progress with that of the company,” said Bhavish Aggarwal,
founder and CEO of Ola.
During the Covid-19 pandemic, Ola
claimed it has experienced a strong recovery in rides because customers seek
safer options, although it did not specify how much. Ola secured $500 million
from private equity firms Warburg Pincus and Temasek earlier this month,
another step it said was in preparation for its Initial Public Offering (IPO).
Matrix Partners, an early investor, also sold a portion of its stock in this
Ola Electric, which was spun out from
Ola and is already valued over a billion dollars, is another
component that Aggarwal likes. It started accepting reservations for its
first electric scooter earlier this month, and in only two days, it had
received 1 lakh reservations.
The timeline of Ola's IPO is
undecided, but it is the latest in a long line of online businesses to
seriously consider going public, putting an end to years of investor
speculation. Insurance firm Policybazaar, fintech firm Paytm, and online
retailer Nykaa are all likely to float soon, following the successful listing
of food delivery service Deliveroo last week.