Ola expands ESOP pool to Rs3000 crore ahead of proposed IPO

MUMBAI: India's largest mobility platform Ola has expanded its pool of employee stock options (ESOP) to Rs3000 crore.

The company is allocating an additional Rs400 crore worth of stocks to its employees as it prepares for its initial public offering (IPO), looking to list on the Indian exchanges by the first half of 2022.

The allocation rewards Ola’s high impact employees and will lead to long term wealth creation for them, the company said.

“Our expanded ESOP programme, along with the fresh stock allocation of Rs400 crore, enables our key talent to participate in the long-term wealth creation opportunities generated by their innovations and the impact they create," said Bhavish Aggarwal, founder, Ola, adding that it will also reinforce a sense of ownership among employees and align their growth with that of the company's.

Earlier this month, Temasek Holdings and Warburg Pincus invested a combined $500 million in ANI Technologies Pvt. Ltd which runs Ola.

Bhavish Aggarwal had also participated in the round. He currently holds a 7.9% stake in the 11-year-old company, according to researcher Tracxn.

Japan’s SoftBank is currently the largest shareholder in Ola with a 22% stake, while China’s Tencent owns 9%.

Ola operates in more than 125 cities across India, and also has operations in the UK, Australia and New Zealand.

The ride-hailing industry was one of the worst-hit by the pandemic as demand fell sharply with companies adopting a work-from-home policy.

As a result, several mobility firms announced mass layoffs last year.

Over the last several months, however, Ola has seen a strong recovery in its ride hailing business as customers look for safer ways to travel.

Meanwhile, Ola’s electric vehicle division, Ola Electric, is readying to launch its electric scooter in India by the end of this month.