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HomeTechOla board approves acquisition of Avail Finance

Ola board approves acquisition of Avail Finance

Bengaluru: 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.

Sources said Avail Finance cofounder Ankush Aggarwal has informally updated some of its investors about the deal’s progress. Aggarwal 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
Aggarwal would be primarily responsible for the lending business.

Ankush Aggarwal is the brother of Ola cofounder and CEO Bhavish Aggarwal. The company said on March 25 that it would be acquiring Avail Finance in a $50 million share swap deal, subject to the board’s approval.

ET reported on the same day that 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.

ET had reported that the deal would be considered a related-party transaction as both brothers are directors of Goddard Technical Solutions, which operates Avail Finance.

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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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