Ola board declares acquisition of Avail Finance
By siliconindia | Monday, April 11, 2022
The board of ANI Technologies, the parent company of ride-hailing firm Ola, has approved the acquisition of Avail Finance, according to people briefed on the matter. They said the formal documentation of the deal was underway.
Ankush Aggarwal, cofounder of Avail Finance, is the brother of Ola founder and CEO Bhavish Aggarwal. As peran earlier report, the deal would be considered a related-party transaction as both brothers are directors of Goddard Technical Solutions, which operates Avail Finance.
Sources said Ankush Aggarwal has informally updated some of Avail’s investors about the deal’s progress. He is expected to lead the business of Ola Financial Services, the fintech arm of the ride-hailing firm, according to a source aware of the matter. ET reported on March 25 that he would be primarily responsible for the lending business.
Ola had said on March 25 that it would acquire Avail Finance in a $50 million share swap deal, subject to the board’s approval.
Ankush Aggarwal and Avail Finance’s investors, including Alpha Wave Ventures and Matrix Partners, would get a stake in ANI Technologies after the acquisition.
An Ola spokesperson declined to comment.
Avail Finance provides loans to blue-collar workers. Ola had said in a press statement that the deal would help the company strengthen its play in the credit-underserved segment, which includes the company’s driver partners.
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