Ola signs agreement to acquire neo bank Avail Finance

Mobility firm Ola has signed an agreement to acquire neo bank Avail Finance which provides financial services to the blue-collared workforce and has over 6 million users, the company said on Thursday.

The acquisition is a key step in Ola's broader push into the fintech space as it looks to build a mobility-focused financial services business under Ola Financial, it stated.

"With this acquisition, Ola Financial Services will further strengthen its play in the credit underserved segments that comprise blue-collar workers such as Ola's driver-partner ecosystem. The deal is subject to shareholder approval," Ola said.

With this expansion, Ola will be able to cross-sell multiple lending products to its large driver-partner base.

Ola recently invested nearly Rs 800 crores into its financial services business. The company is offering a buy now pay later service, Ola Postpaid, to its four crore customers.