Ola said it has successfully raised $500 million via a Term Loan B (TLB) from marquee international institutional investors. This term loan has no impact on the valuation of Bhavish Aggarwal-led Ola.

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The Bengaluru-based firm recently raised $139 million. This is part of a $1 billion funding round for which the company is in talks with investors, increasing its valuation to about $7.5 billion, media reported.

Ola said the proposed loan issuance received a staggering response from investors with interest and commitment of approximately $1.5 billion. A term loan provides borrowers with a lump sum of cash upfront for specific borrowing terms. Term loans are commonly granted to small businesses that need cash to purchase equipment, a new building for their production processes, or other fixed assets, media reported.

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Ola said it is one of the first Indian startups to be publicly rated by Moody’s and S&P, two leading international rating agencies. S&P and Moody’s rated Ola’s first-lien term loan as B- and B3 respectively, with a ‘stable’ outlook, on the back of solid unit economics and profitability in its market-leading Indian ride-hailing business.