Ola expands ESOP pool to Rs 3,000 crore leading up to IPO

Ride-hailing firm Ola on July 28 said it has expanded its employee stock option pool to Rs 3,000 crore and allotted an additional Rs 400 crore worth of stocks to employees ahead of its impending public share offer.

“Our expanded ESOP programme, along with the fresh stock allocation of Rs 400 cr, enables our key talent to participate in the long term wealth creation opportunities generated by their innovations and the impact they create. It will also reinforce their sense of ownership and align their growth with that of the company as we continue to accelerate the world’s transition to sustainable mobility” said Bhavish Aggarwal, founder and CEO, Ola.

Ola said it has seen a strong recovery in rides because people want safer options during the Covid-19 pandemic, but did not specify to what extent it has recovered.

Earlier this month Ola also raised $500 million from private equity giants Warburg Pincus and Temasek, another move it said was in preparation for its Initial Public Offering (IPO). Early investor Matrix Partners also sold a portion of its stake in this round.

Aggarwal is also bullish on Ola Electric, spun off from Ola and already valued at over a billion dollars. It opened bookings for its first electric scooter earlier this month, and saw 1 lakh bookings in two days.

Ola’s IPO timeline is unclear, but it is the latest among a slew of internet startups to seriously weigh listing, ending years of investor anticipation. While food delivery firm listed successfully last week, insurance firm Policybazaar, fintech firm Paytm and online retailer Nykaa too are expected to list soon.