new Delhi. Indian ride-hailing firm Ola has announced that it has reached an agreement to acquire Avail Finance, a Neo Bank. It provides financial services to the blue-collar workforce and has over 6 million users.
The acquisition is a significant step in Ola’s broadening into the fintech space as it seeks to build a mobility-focused financial services business under Ola Financial.
With this acquisition, Ola Financial Services will further strengthen its game in the credit underserved segment, which includes blue collar workers like Ola’s driver partner ecosystem. The transaction is subject to shareholder approval.
The company said in a statement, “Ola will leverage the products and capabilities of Avail Finance to strengthen Ola’s lending business and help Ola to expand into Neo Banking products. To leverage Ola’s fintech business into the consumer lending industry. Will be augmented by Avel Finance’s strong leadership team along with a strong technical team with experience.”
With this expansion, Ola will be able to cross-sell multiple lending products to its large driving partner base. They will be provided with a one stop destination for all their financial needs.
Ola recently invested around Rs 800 crore in its financial services business which is already showing strong growth in both its lending and insurance segments.
Ola Postpaid, its BNPL offering is available to 40 million customers and its vehicle financing business is growing rapidly with Ola Electric as well as Ola Cars, its used cars business.
—AnyTV News
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