Home Business Ola’s financials services arm raises ₹200 crore, CEO Nitin Gupta quits

Ola’s financials services arm raises ₹200 crore, CEO Nitin Gupta quits

Ola Financial Services Pvt Ltd, the financial services arm of cab-hailing platform Ola has raised fresh funding of ₹200 crore from Matrix Partners and Flacon edge up its on-going funding round, said two people conscious of the event .

Separately, the financial services arm’s chief executive Nitin Gupta resigned from his position on Tuesday.

Ola Financial Services is currently in fundraising mode, and it’ll look to secure additional equity financing within the following months, said the person conscious of Ola’s operations asking to not be named.

Ola’s financial services arm was spun faraway from its parent entity ANI Technologies Pvt Ltd last year, because the company setoff to expand vertically into the payments and financial services segment. Currently Ola Financials Services Pvt Ltd. houses the mobile payments and wallet product, Ola Money.

Currently, Ola has five different businesses segment including cab and auto bookings; cab-leasing (Ola Fleet); electric vehicles (Ola Electric); food delivery (Ola Foods); payments and financial services (Ola Financial Services).

The fresh fund infusions into Ola Financial Services Pvt Ltd. comes at a time when the country has been battling covid-19 with stringent lockdown measures. The pandemic has globally affected revenues of companies within the mobility and hospitality space, as people stayed indoors.

This week, Ola had announced that it’s shedding over 1,400 employees, affecting around 35% of its total workforce within the country, while its competitor Uber also abandoning off around 600 employees in India on Tuesday.

Apart from the funding, Nitin Gupta, chief executive of Ola Financial Services (OFS) also resigned from his position, consistent with an indoor email seen by Mint. the e-mail penned down by Ola’s chief executive Bhavish Aggarwal to his employees announced Gupta’s departure from the corporate on Tuesday.

Gupta had earlier co-founded PayU India, and joined OFS as its CEO in December 2017. He are going to be temporarily replaced by Harish Abhichandani, who has appropriated as interim CEO, the e-mail added.

Earlier Ola announced to fire its 1400 employees.

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