ANI Technologies, the parent company of ride-hailing platform Ola Cabs, has reached an agreement to acquire a 100% stake in FinTech startup Avail Finance.
According to a report by TechCrunch, the startups did not disclose the terms of the deal.
Ola co-founder and chief executive Bhavish Aggarwal and Avail Finance founder and chief executive Ankush Aggarwal are brothers. The two companies share Alpha Wave Global and Matrix Partners as major common investors. The deal is seeking approval from shareholders.
Avail Finance, which was founded in 2017, helps the blue-collared workforce in India access loans with flexible repayment options, through a digital app. Through the app, users can access salary advances and quick loans, as well as tools to manage their money.
Ola reportedly said the acquisition will help its to “strengthen its play in the credit underserviced segments that comprise blue-collar workers such as Ola’s driver-partner ecosystem.” That play includes cross-selling “multiple lending products” to its driver partners, it added.
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